What are the greatest issues facing Central Americas economies?
Central America has strong economic linkages to the United States. The United States is the region’s main export market and there are also significant financial sector linkages. Given the projected deep and prolonged U.S. recession, Central America’s exports and remittances are likely to be affected adversely clouding the region’s growth prospect. With still very high poverty levels, the vulnerable groups of society might be affected the most, calling for public policies to protect them. What are the main elements of the precautionary Stand-by arrangement you worked on for El Salvador? The foundation for the 14 and a half months precautionary Stand-by arrangement is El Salvador’s 2009 economic program. The economic program focuses on maintaining a prudent fiscal stance—while providing additional space to increase social and infrastructure spending—and further strengthening the financial system such as improving financial sector supervision. Under what circumstances would El Salvador ma
