Preliminary Overview of the Economies of Latin America and the Caribbean 2001

The severe slowdown in the world economy in 2001 cut short the recovery that had begun in 2000 and dashed hopes that Latin America and the Caribbean were about to embark upon a new growth cycle. Unlike the crises of the 1990s, which were confined to a limited group of countries, the slowdown of 2001 engulfed the region as a whole. The impact of the adverse international environment impinged upon all areas of activity; in fact, the consequences of this situation were felt more keenly by the domestic economy than by export activities. Nevertheless, the region’s economies did quite well in withstanding a large part of these destabilizing shocks and, with the exception of Argentina, in averting domestic or external crises.