Annual Economic and Financial Review -December 2018

2018 Annual Economic and Financial Review

DOMESTIC ECONOMIC DEVELOPMENTS

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.

______________________________________________________________________________ 19 Eastern Caribbean Central Bank