Caribbean & Central America - December 2011 (ISSN 1741-4458)

The big problem is the labour market. Unemployment, despite the respectable GDP growth, is still at 14.6% or half a percentage point higher than a year before (the most recent figures, however, are for April this year). What is also worrying is the quality of jobs: 57% of people who say that they are employed, work in the informal sector up from 49% a decade ago.

Remittances have also been strong this year. According to the central bank, inflows are up by 7% year-on-year in the first half of 2011. Foreign direct investment is also strong and on course to hit the government’s target of US$2bn for 2011.