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Caribbean economic growth expected to decline again

By Caribbean 360

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Growth in Latin America and the Caribbean is expected to decline for a fifth consecutive year, dipping below one percent in 2015, the IMF said in its latest regional forecast.

The IMF’s recently released Regional Economic Outlook for the Western Hemisphere projects growth in Latin America and the Caribbean at 0.9 percent in 2015, down from 1.3 percent last year.

Near-term prospects remain fairly dim for South America, with output contractions projected in three of the largest economies for 2015—Argentina, Brazil, and Venezuela—while only Chile and Peru would see a pick-up in growth.

In contrast, growth is projected to be steady in Central America and the Caribbean, and strengthen in Mexico, thanks to lower oil bills for importers and robust economic recovery in the United States.

For 2016, growth in the region is expected to make a modest recovery to two percent.

The IMF said Central America’s economies are expected to benefit from the current external environment, particularly from the U.S. recovery. Growth in 2015 is projected at a solid 4.25 percent, close to last year’s number.

Economic recovery is also expected to continue in the Caribbean, although external, fiscal, and financial vulnerabilities remain high in several economies. In the tourism-dependent Caribbean, growth is projected to improve to two percent, in 2015.

The IMF called on policymakers in the region to ensure sound public finances, especially since downside risks to growth remain prominent.

Financial sector vulnerabilities will also need to be monitored carefully given that weaker earnings, tighter funding conditions, and a stronger U.S. dollar are testing borrowers’ resilience.

A key priority for governments is to tackle long-standing structural problems to raise investment, productivity, and potential growth. Improvements in business environments, infrastructure, and education will help to foster more diversified, resilient, and prosperous economies.

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6 comments

  1. ==========
    Adding to the distress was that the IMF’s prognosis for 2016 was little better and IMF officials estimated that St Lucia would be keeping Barbados’ company at the bottom of the growth projections list. - See more at: http://www.nationnews.com/nationnews/news/67088/editorial-pm-engage-people#sthash.mcBg0LOr.dpuf
    ==========

    I see a very distinct pattern of economic education deficiency as part and parcel of the downturn in Barbados and malaise in Saint Lucia.

    We are putting at the head of government people without any credible knowledge of how a modern economy has to be organized in order to make it grow. So all the talk and bravado of chimerical FDI leaves the economy in a shambles. The people are being entertained on platforms and are forced to return home to their hardships and destitution.

    Witness the index of hopeless. See the domestic suicide rate, perhaps the highest in the English-speaking Caribbean. Where ignorance is bliss, it is folly to be wise.

    The ignorant old fogies in the various constituency branches in a compact with their proud, dumb and boastful lined-up stooges, who are just good enough to fix potholes and put light on electric poles, will give us another commanding repeat performance and call nobody into account. Yet we have gross financial and economic failure, vision-less leadership, [We have a risible commission to piece one from public opinion] clueless management, and political deceit with the suppression of national debate of national issues like our government estimates of expenditure. Woy!

    Then we wonder why we are unable to get out of the hell hole created?

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  2. concerned st.lucian

    to increase spending eccb reduced the savings rate down to 2% and remove 1cents n 2cents from circulation claiming it's to expensive to keep. Now tell me if st.lucians were smart and ecudating themselves would they fall for this BS that the economy is doing well in st.lucia. sad to c my people have the technology in their face yet use it for all the wrong reasons. According to kenny.."better days are here"... sad sad

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  3. First paragraph says "Growth in Latin America and the Caribbean is expected to DECLINE for a fifth consecutive year".

    Fourth paragraph says "In contrast, growth is projected to be STEADY in Central America and the Caribbean"

    Is it expected to decline OR be steady? Or is the decline for some islands and the steady for other islands?

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  4. "Growth in Latin America and the Caribbean is expected to decline for a fifth consecutive year, dipping below one percent in 2015, the IMF said in its latest regional forecast".

    AND FOR THE PAST COUPLE OF YEARS KENNY ANTHONY AND HIS SLP MISFITS HAVE BEEN SAYING THAT THERE HAS BEEN STEADY GROWTH IN THE ECONOMY!
    SMH

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  5. I expect the PM and his gang of stooges will use this as an excuse instead of coming up with creative solutions to grow the economy

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    • As usual. And you are so darn right. It is as if Saint Lucia has a restricted market called "the Caribbean". The whole world is our market. Make something of value for the world and it would sell. Stop creating a future of hotel maids, bell hops and gardeners and grass cutters just suitable for STEP.

      My parents did not birth me to be a stooge for anyone. For no one. Only idiots without BORLZ and those with such low self-esteem would ever describe themselves as stooges. I don't shake hands with stooges!

      When leadership genius is supported by such effusive acceptance of economic fallacies such as STEP, which is a transfer of wealth based on borrowed money, we know, yes we know full well that SLP -- with no vision (it is now canvassing for one) -- and loaded with real-life blissfully-stupid self-proclaimed STOOGES, is empty. That is, except for its usual EMPTY PROMISES!

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