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Economic Recovery Relies on Accurate Predictions
In the early 1990s, countries like Mexico relied heavily on commodity exports, such as oil, for foreign currency earnings, which directly linked economic stability to commodity production and pricing. As debt restructuring evolved, focus shifted from commodity reliance to broader economic indicators, particularly GDP levels, as key factors in determining recovery payments. Debt sustainability analyses (DSAs) became crucial, as predictions from IMF economists about a country's economic future now significantly influenced sovereign debt restructuring, highlighting the importance of accurate economic forecasting for financial recovery.