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2018 Annual Economic and Financial Review ST VINCENT AND THE GRENADINES
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Eastern Caribbean Central Bank
continues to be impacted by low room stock
and limited opportunities for building a local
brand. The sector may be further enhanced
by more targeted efforts to improve tourism
receipts in important components such as
sightseeing, entertainment, shopping for local
goods, as well as food and beverage. Other
downside risks relate to the continued low
implementation rate of infrastructural projects
and the uncertainty in the global environment
from ongoing trade tensions, the challenges
related to Brexit negotiations and slowdown in
a number of advanced economies. These
developments could limit tourism demand and
foreign investment.
In addition, one of the most notable risks for
small
island
states
such
as
St Vincent and the Grenadines is the threat of
extreme climatic events. The effect of climate
change has increased the intensity and
frequency of natural disasters, which could
pose significant social and economic costs for
the island. While St Vincent and the
Grenadines has made the initial steps in
establishing a contingency fund, the potential
wide-ranging impacts of such extreme events
suggest that additional options for resilience
and adaptation may be required.