The graph shows two main drops in GDP, one in 1985 and one in the early 1990s. From 1983 to 1988 GDP grew only 0.1 per cent, inflation grew at an average of 2 per cent, and public consumption not at all. The economy during the 1980s stagnated, due to scarce credit, negative terms of trade and high domestic interest rates. The reduction in domestic savings impeded economic growth.
During 1993, the economy grew by a very small amount, but the spike in 1994 was due to a relaxation of fiscal and monetary policies and a bolstering of foreign investment due to the North American Free Trade Agreement (Nafta).