Employment started to shrink in late 2008, and with the labour force continuing to grow steadily, the non-farm unemployment rate approached 20% in early 2009.
Given global and domestic uncertainties, the credibility of economic policy is key for sustaining confidence and the recovery. A robust medium-term spending framework would facilitate the operation of the automatic stabilisers and a new agreement with the International Monetary Fund would help to safeguard the confidence of domestic and international investors. Structural reforms to accelerate formalisation in the business sector would help improve longer-term growth prospects.
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©OECD Observer No 274, July 2009