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2018 Annual Economic and Financial Review
DOMESTIC ECONOMIC DEVELOPMENTS
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Eastern Caribbean Central Bank
operations can put a greater strain on the
fiscal and hinder governments’ ability
to implement their capital programme. The
ECCU also faces a myriad of socioeconomic
challenges, including competitiveness, labour
market rigidities, unemployment and
underemployment, poverty and crime, which
can damper growth prospects.
Other significant risks are those related to
climate change, global warming and natural
disasters - including an active hurricane
season, a slow-down in inflows from the
Citizenship by Investment Programmes and
continued challenges with de-risking and
correspondent banking relationships.
On the upside, initiatives to improve
efficiencies in the banking service
infrastructure to facilitate doing business bode
well for competitiveness. Any improvement
in global conditions could stimulate further
activity and in turn bolster growth in the
region. In addition, positive developments
regarding commodity prices could lead to
improvements on the balance of payments.