(JAMAICA STAR) – The International Monetary Fund (IMF) says notwithstanding the improved economic growth performance and public debt reduction in the Eastern Caribbean Currency Union (ECCU), the growth is expected to be “moderate going forward”.
The ECCU groups the islands of Antigua and Barbuda, Dominica, Grenada, St Lucia, St Vincent and the Grenadines, St Kitts-Nevis, Montserrat and Anguilla.
In January, an IMF delegation concluded the 2019 discussion on the common policies of the ECCU and warned that growth would be affected as the cyclical momentum normalises and Citizenship by Investment (CBI) inflows ease.
“These trends would also contribute to wider fiscal deficits, ending the downward drift in public debt dynamics. Meeting the regional 60 per cent of gross domestic product (GDP) debt benchmark by 2030 will be challenging for most ECCU countries. The outlook is clouded by downside risks, including a possible intensification of natural disasters and financial sector weaknesses. Larger well-managed CBI flows may be a source of an upside risk,” the IMF delegation said then.