Eastern Caribbean Currency Union: 2021 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, May 4, 2021
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- Eastern Caribbean Currency Union: 2021 Discussion on Common Policies of Member Countries—Press Release; Staff Report; and Statement by the Executive Director for the Eastern Caribbean Currency Union
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Bibliographic details
- Published: May 4, 2021
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513572925.002
COVID-19 impact and macroeconomic outlook
- Tourism receipts, accounting for nearly 40 percent of GDP, have dried up as tourist arrivals halted.
- ECCU economy projections:
- Contract by 16 percent in 2020.
- Contract by a further near ½ percent in 2021.
- Authorities initially contained COVID-19 by largely closing borders; reopening since the summer led to a surge in COVID cases.
- The outlook is clouded by exceptionally high risks, including uncertainty concerning the evolution of the pandemic.
Fiscal stance and public debt
- Fiscal positions have deteriorated sharply.
- Public debt is projected to reach near 90 percent of GDP in 2021 and remain at an elevated level for years to come.
Financial sector conditions
- Headline indicators suggest the financial system is relatively sound with ample liquidity buffers.
- Nonperforming loans are expected to rise significantly.
Key themes and sectors affected
- Economic sectors and issues highlighted: Economic sectors, Financial institutions, Health, Monetary policy, Public debt.
- Noted vulnerability: heavy reliance on tourism (nearly 40 percent of GDP).
International Monetary Fund. Eastern Caribbean Currency Union: 2021 Discussion on Common Policies of Member Countries—Press Release; Staff Report; and Statement by the Executive Director for the Eastern Caribbean Currency Union.
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