Economic Survey of Latin America and the Caribbean 2009-2010

The Distributive Impact of Public Policies

image of Economic Survey of Latin America and the Caribbean 2009-2010

In 2009, the countries of Latin America and the Caribbean experienced the brunt of the global financial crisis on their levels of activity. However, since the second half of the that year, most countries in the region just begun a vigorous recovery that should strengthen with a regional GDP expansion of approximately 5.2 per cent. The factors behind a more positive performance are both external and internal in nature. Amongst the former can be included the continued dynamism of some key Asian economies, whose sustained demand for products from this region has created important conditions for a recovery in exports, especially in the case of South America.




The Jamaican economy deteriorated in 2009, forcing the government to enter a 27-month International Monetary Fund (IMF) stand-by arrangement which will provide US$ 1.2 billion over the period. The agreement, which was signed in February 2010, was designed to restore confidence in the Jamaican economy. While the proximate cause of the economic problems was the global recession and its impact on export demand, deeper issues lay in the cumulative effects of an expanding public debt, relatively large current account and fiscal deficits, and falling investor confidence.


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