26 / 173
2018 Annual Economic and Financial Review
DOMESTIC ECONOMIC DEVELOPMENTS
______________________________________________________________________________
16
Eastern Caribbean Central Bank
growth prospects remain relatively
favourable.
Projections are for the world
output to expand by 3.3 per cent in 2019 and
3.6 per cent in 2020. In light of downside
risks, which have the potential to affect
anticipated gains, growth in the advanced
economies is projected to decelerate to
1.8 per cent in 2019 and 1.7 per cent in 2020.
More significantly, economic activity in the
United States of America, one of the region’s
major trading partners, is expected to expand
by 2.3 per cent in 2019 and soften to
1.9 per cent in 2020, as fiscal stimulus
continue to unwind. Other noteworthy
economies include the UK, which despite
headwinds associated with Brexit, is expected
to grow by 1.2 per cent in 2019 and Canada,
forecasted to expand by 1.5 per cent in that
same year.
Consistent with the prospects for the
aforementioned countries and regional
efforts to spur growth, some strengthening
is projected for economic activity in the
ECCU in the short to medium term.
Forecasts are for enhanced activity in all
member territories and ultimately for the
currency union. It is anticipated that the
improvement will be influenced by buoyancy
in the construction sector, supported by
positive developments in some of the major
economic sectors, including hotels and
restaurants, agriculture, livestock and
forestry, wholesale and retail trade, transport,
storage and communications and real estate,
renting and business activities. Additionally
increased foreign direct investments is likely
to influence growth, as member countries
continue to benefit from the Citizenship by
Investment Programmes.
Forecasts for the near-term point to
strengthened construction-related output
driven by activity in both the private and
public sectors, more so in the private sector.
Activity in the private sector is likely to
remain buoyant as work progresses on a
number of tourism-related construction
projects in member territories, including
St Kitts and Nevis, Saint Lucia, Dominica and
Antigua and Barbuda. In the public sector,
construction activity is also projected to rise in
most ECCU countries. The focus will be on
road and other infrastructural developments,
including a new cruise ship berth and
secondary school in St Kitts and Nevis, port
re-development and enhancement in
Antigua and Barbuda, airport development in
Saint Lucia, air and sea port development in
Anguilla and geothermal-related development
in St Vincent and the Grenadines.