Eastern Caribbean Currency Union: 2025 Staff Report for the 2025 Discussion on Common Policies of Member Countries-Press Release; and Staff Report
IMF Staff Country Reports, May 8, 2025
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- Eastern Caribbean Currency Union: 2025 Staff Report for the 2025 Discussion on Common Policies of Member Countries-Press Release; and Staff Report
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Bibliographic details
- Published: May 8, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229010030.002
Overview
- Presents a detailed review report for the 2025 Discussion on Common Policies of Member Countries of the Eastern Caribbean Currency Union (ECCU).
- The currency union has provided a strong anchor for macroeconomic stability.
- The ECCU has achieved a strong rebound from successive adverse shocks.
Growth, Inflation, and Drivers
- Strong tourism performance and continued infrastructure investments have supported robust post-pandemic growth.
- Inflation has moderated in tune with global trends.
Downside Risks and External Environment
- Downside risks to the outlook are significant amid a highly uncertain external environment.
- Specific external risks noted:
- Increased trade and geopolitical tensions could give rise to renewed inflationary pressures.
- Disruptions to tourism and foreign direct investment inflows.
Fiscal, External, and Financial Vulnerabilities
- High public debt increases fiscal vulnerability.
- Persistent current account deficits are a continued concern.
- Weaknesses in the local financial system amplify vulnerability to:
- Recurrent natural disaster shocks.
- Uncertain outlook for future Citizenship-by-Investment inflows.
Policy Recommendations and Structural Priorities
- Enhance financial system resilience.
- Reduce persistent credit-frictions to support a more conducive environment for growth-supporting local investment.
- Strengthen economic data to significantly improve regional policy design and risk management.
Content in this bundle
- 1. External Sector Developments