2010 Labour Overview. Latin America and the Caribbean.

In Latin America and the Caribbean, 2010 closes with an encouraging scenario of economic recovery. Nearly all countries in the region recorded positive economic growth, moving away from the spectre of recession. The macroeconomic strength of the countries in the region determined their level of economic growth. This growth was also directly related to the diversification and expansion of these countries’ foreign markets and their capacity for investment and public and private domestic consumption.

In Latin America and the Caribbean, 2010 closes with an encouraging scenario of economic recovery, although uncertainty continues in developed countries with respect to the pace and sustainability of the revitalization of their economies.

This uncertainty in developed countries originates from the limitations they face in maintaining counter-cyclical policies that require significant investment and fiscal spending. For their part, many countries in Latin America and the Caribbean had more fiscal space in 2010 to apply economic recovery and social protection policies, thanks to the savings obtained during the last economic growth cycle, which took place in a stronger macroeconomic context.

Recent estimates indicate that in 2010, the economies of Latin America and the Caribbean as a whole grew 6.0% with respect to the previous year. Some countries lead growth given that they have maintained a diversified foreign sector with economies that support a growing demand for exports from this region. In addition to their focus on the foreign market, these countries promoted a set of policies and initiatives to strengthen the consumption capacity of their populations, which also stimulated domestic demand.