growth rate became negative for the first time in 1997
with a GDP growth rate of –1.4 percent; it reached –10.5
percent in 1998. The economy began to recover in 1999
with real GDP growth of about 4.1 percent, led by the
manufacturing sector and increased domestic demand
boosted by several government stimulus packages.
Private consumption grew moderately, resulting in part
from rising consumer confidence and modestly
expanding farm income. Government stimulus measures,
which included reducing the value-added tax rate from
10 to 7 percent and cutting taxes on petroleum products,
also helped to boost private consumption. Tourism
increased by 10 percent from 1998, partly as a result of
the lower exchange rate, with the number of tourists
reaching 8.5 million in 1999. The private investment
index declined moderately in 1999, compared with its
steep decline in 1998.