In the third quarter net foreign demand's contribution to growth turned negative as a consequence of the sharp slowdown in exports; sales of capital goods to emerging markets in the region contracted. There continue to be deflationary pressures on both consumer and producer prices.
In the other Asian countries, and especially those most dependent on the international cycle, the rate of growth declined in the second half of 2000, although it remained relatively high. In Latin America the economies of the countries with the closest trade links with the United States performed well.