In the first half of the 1990s when the economy grew at an annual average rate of 6%, inflation rate, measured by the consumer price index, rose faster at an average rate of 7.8%. In the wake of the Asian financial crisis in October 1997, which sent most Asian Pacific countries into recession, hit hard on Macau's economy. Real GDP did not grow in 1997 and declined by an estimated 31/2 percent in 1998. Inflation declined from about 5 percent in 1996 to 31/2 …showed first 75 words of 1092 total…

…showed last 75 words of 1092 total…e tourism boom has contributed greatly to Macau's record-high economic growth rate of 14 percent last year. Despite stagnant economic activity in recent years, Macau has maintained relative financial stability, characterized by moderate inflation and a strong external payments position. This owned much to the Macau government's success in maintaining a cautious fiscal stance, and defending the pegged exchange rate regime in the face of the deepening adverse impact of the Asian crisis in 1997-98.