Eastern Caribbean Currency Union: 2018 Discussion on Common Policies of Member Countries-Press Release; Staff Report; and Statement by the Executive Director for the Eastern Caribbean Currency Union
IMF Staff Country Reports, February 22, 2019
Source details
- Canonical URL
- Eastern Caribbean Currency Union: 2018 Discussion on Common Policies of Member Countries-Press Release; Staff Report; and Statement by the Executive Director for the Eastern Caribbean Currency Union
Other formats
Bibliographic details
- Published: February 22, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498300056.002
Executive summary and context
- Member countries are gradually recovering following the catastrophic impact of Hurricanes Irma and Maria in 2017.
- Conditions remain favorable to growth, however, risks are increasing.
- The fiscal balance for the region as a whole worsened in 2017, reflecting lower inflows from citizenship-by-investment programs and higher reconstruction and current spending.
Key findings
- Recovery trajectory: gradual recovery from 2017 hurricane shocks, but rising risks could derail momentum.
- Fiscal developments: the regionwide fiscal balance worsened in 2017 due to:
- lower inflows from citizenship-by-investment programs;
- higher reconstruction spending; and
- higher current spending.
- Financial sector vulnerabilities:
- Longstanding problems persist in the banking sector.
- Emerging risks are present in the non-banking sector.
- Need for decisive and timely actions to resolve financial sector weaknesses.
- Policy focus: current emphasis on recovery from natural disasters should shift toward building ex-ante resilience.
- Structural policy agenda: advancing structural reforms is necessary to enhance competitiveness and make growth more inclusive.
Policy recommendations
- Shift policy emphasis from immediate post-disaster recovery to building ex-ante resilience.
- Intensify decisive and timely measures to resolve weaknesses in the financial sector, addressing:
- longstanding banking sector problems;
- emerging risks in the non-banking sector.
- Accelerate key reforms to upgrade and strengthen the financial sector regional oversight framework (authorities expressed commitment to this acceleration).
- Pursue fiscal consolidation alongside renewed efforts on the structural policy agenda to enhance competitiveness and inclusiveness.
Thematic issues covered
- Credit bureaus; Credit unions; Environment; Financial institutions; Financial markets; Insurance; Natural disasters; Nonperforming loans; Public debt; Public financial management (PFM); Stress testing.
Publication and document identifiers
- Pages: 82
- Volume: 2019
- Issue: 062
- Series: Country Report No. 2019/062
- DOI: https://doi.org/10.5089/9781498300056.002
- Stock No: 1ECCEA2019001
- ISBN: 9781498300056
- ISSN: 1934-7685
International Monetary Fund. Eastern Caribbean Currency Union: 2018 Discussion on Common Policies of Member Countries-Press Release; Staff Report; and Statement by the Executive Director for the Eastern Caribbean Currency Union (February 22, 2019).
Content in this bundle
- Fitting Fiscal Frameworks to Country Characteristics