The answer is the combination of negative external shocks, to which the region remains quite vulnerable. In their absence, the region was poised to maintain a path of relatively high growth. International terms of trade and commodity prices deteriorated substantially in 1998, in large part as a result of the East Asian crisis.
2  BIS Review 90/2008  In conjunction with the June FOMC meeting, Board members and Reserve Bank presidents prepared economic projections covering the years 2008 through 2010.