Eastern Caribbean Currency Union: 2017 Discussion on Common Policies of Member Countries-Press Release and Staff Report
IMF Staff Country Reports, June 14, 2017
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- Eastern Caribbean Currency Union: 2017 Discussion on Common Policies of Member Countries-Press Release and Staff Report
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Bibliographic details
- Published: June 14, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484303375.002
Executive summary and outlook
- Favorable external conditions continue to support economic recovery in the ECCU.
- The short-term outlook is favorable and risks are broadly balanced.
- Strong structural policies are needed to address impediments to medium-term growth.
Growth drivers and near-term headwinds
- Recovery supported by favorable external conditions.
- Growth weakened by:
- Flat tourism receipts.
- Falling revenues from citizenship programs.
Fiscal position and public debt
- The fiscal position has deteriorated slightly.
- Public debt remains high.
Financial sector developments and risks
- Progress has been made on financial sector reform.
- Bank lending continues to decline.
- Indigenous banks’ profitability is adversely impacted by increasing costs to secure correspondent banking relationships.
Policy implications and priorities
- Maintain policies that preserve the favorable short-term outlook while addressing:
- Structural impediments to medium-term growth.
- Measures to reverse declining bank lending and restore profitability for indigenous banks facing higher correspondent banking costs.
- Fiscal consolidation and debt management to address high public debt and the slight deterioration in the fiscal position.
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- Country Report