27 / 173
2018 Annual Economic and Financial Review
DOMESTIC ECONOMIC DEVELOPMENTS
______________________________________________________________________________
17
Eastern Caribbean Central Bank
Increased value added in the hotels and
restaurants sector is anticipated, buoyed by
greater demand for leisure services from
major source markets, as the outlook for these
economies remains generally favourable.
Intensified marketing and sales efforts,
increased airlift, combined with new
initiatives and augmented room stock may
further enhance the performance of the
tourism industry. Projections for the cruise
sub-sector remain positive, based on advanced
scheduling of ships and on-going efforts to
bolster cruise-related infrastructure. The
anticipated improvement in tourism is likely to
have positive spill-over effects on ancillary
sectors including wholesale and retail trade,
real estate, renting and business activities and
transport, storage and communications, hence
a further boost for the economy of the ECCU.
Output in the agriculture, livestock and
forestry sector is likely to strengthen, largely
based on expected developments in all crops,
particularly non-banana production. On-
going efforts by most of the territories towards
investment in agriculture, diversification
within the sector and building external
linkages, augur well for boosting overall value
added in agriculture. Inter alia, anticipated
developments with medicinal cannabis in
St Vincent and the Grenadines, rehabilitation
of coffee and cocoa in Dominica, coupled with
strengthening banana export in Saint Lucia are
all likely to add impetus to agricultural
production.
In light of the broad based gains in the
governments’ fiscal performance this year
and the projected improvement in economic
activity, the consolidated fiscal operations
of member governments are projected to
maintain an overall surplus position, as
they continue to implement policies geared
towards fiscal and debt consolidation.
Notwithstanding anticipated improved current
account outturns in some territories, further
fiscal challenges are possible as official grant
inflows wane. Capital expenditure is
projected to rise in most member countries, as
work on infrastructural projects progresses,
especially in the hard-hit territories where
rebuilding efforts are still on-going following
hurricanes Irma and Maria. Despite the
expected developments on the fiscal accounts
and the anticipated growth, greater efforts are
necessary to leapfrog the region out of its
current state of low growth towards a greater
thriving citizenry. Initiatives towards
strengthening the fiscal and debt dynamics are
imperative and must be at the forefront. These
measures should include the building and
strengthening of fiscal and financial buffers.