Eastern Caribbean Currency Union: 2016 Discussion on Common Policies of Member Countries-Press Release and Staff Report
IMF Staff Country Reports, October 25, 2016
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- Eastern Caribbean Currency Union: 2016 Discussion on Common Policies of Member Countries-Press Release and Staff Report
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Bibliographic details
- Published: October 25, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475546361.002
Summary
- The IMF Staff Report for the 2016 Discussion on Common Policies of Eastern Caribbean Currency Union (ECCU) Member Countries finds that the regional recovery in ECCU is gaining ground.
- Supporting factors cited: continued low oil prices, strong tourism arrivals, and robust citizenship-by-investment receipts.
- Growth remains constrained by weak competitiveness, banking sector fragilities, susceptibility to natural disasters, and large public debt.
- Executive Directors encouraged authorities to press ahead with sound macroeconomic policies and structural reforms to address these issues and strengthen conditions for robust long term growth.
Major findings
- Regional recovery is progressing, driven by:
- continued low oil prices
- strong tourism arrivals
- robust citizenship-by-investment receipts
- Persistent constraints on growth:
- weak competitiveness
- banking sector fragilities
- susceptibility to natural disasters
- large public debt
Risks and policy challenges
- Near-term outlook risks are described as balanced.
- Structural and sectoral vulnerabilities that warrant policy attention:
- banking sector fragilities requiring stronger supervision and resolution frameworks
- high public debt levels necessitating prudent fiscal management and public financial management reforms
- vulnerability to natural disasters implying the need for disaster risk management and insurance mechanisms
- competitiveness weaknesses calling for structural reforms to boost productivity and diversification
Executive Directors' recommendations
- Press ahead with sound macroeconomic policies.
- Implement structural reforms decisively to:
- address weak competitiveness
- strengthen the banking sector
- manage public debt
- reduce vulnerability to natural disasters
- Strengthen conditions for robust long term growth through these measures.
Content in this bundle
- 1. Risk Assessment Matrix