Unemployment remains high.
Economic activity strengthened in 1998, and inflation remained low. The central government deficit fell in relation to GDP due partly to higher grant receipts, while government saving was virtually unchanged. Although banana exports and net travel receipts fell, there was a strong recovery in exports of manufactures. Net current and capital transfers from emigrants, workers abroad and foreign donors remained substantial, helping to cover the large trade deficit, with capital transfers to the government amounting to almost half the total. Net capital inflows have been sufficient in recent years to cover the current account deficits and permit surpluses in the overall balance of payments.