KEY ISSUES Context. Growth remains rapid, but has moderated from the 7u percent recorded in 2013. Remittances and accommodative monetary and financial conditions remain the primary growth drivers, despite volatile capital flows, slowing activity in the region and severe natural disasters....

Despite robust growth, rising inequality is widespread in many countries. At the same time financial instability and crises are occurring with greater frequency and severity. These two phenomena are related to the contest for a greater share of economic output between labor and capital, with...