This publication shows that the Latin American and Caribbean economy in 2011 was recovering from the global financial crisis. It also recalls that the positive outlook for the region's economy can be exemplified by the fact that household consumption continued to grow. Thanks to rising real wages and strong job creation, the regional unemployment rate went down in 2011. Readily available credit at low interest rates in many countries actually contributed to a fresh rise in gross fixed capital formation, which took the investment ratio to a new record. Finally, the report also shows that driven mainly by high international prices, the inflation rate rose just slightly compared to the previous year, 2010.