WASHINGTON, DC - THE International Monetary Fund (IMF) has once again reiterated that there is still slow growth thus far for Caribbean economies, which the financial organisation noted is due to the tourism numbers in some areas remaining below pre-pandemic levels.
The region remains tourism-dependent and any vulnerable shocks to the sector will impact the economies - such as intraregional travel.
In the case of St. Kitts and Nevis, for example, the regional market is the second leading source for travellers, but that is still being impacted by poor airlifts in some instances.
When asked by SKNVibes News for an outlook of the OECS and the Caribbean for the remainder of the year, Director of Communications at the IMF, Julie Kozack stated: “The Caribbean economies growth is still lagging other subregions as tourism is yet to recover to the pre pandemic levels.”
That comment was based on a released update from the IMF Spring focus, which this publication was told is expected to be publicly made known on October 13, and that would paint a clear picture of the current state of the economies in the region, including St. Kitts and Nevis.
“These countries also remain vulnerable to a global economic slowdown and to a tightening of financial conditions,” Kozack said in response to the question.
Alarmingly for the IMF is the levels of public debts many of the territories currently have on their books, as Kozack pointed out: “Moreover, public debt remains high and above prepandemic levels in many Caribbean economies.”
This was recently outlined by Nevis’ Premier Mark Brantley, who disclosed in August that the Nevis Island Administration’s public debt stands at more than EC$400 million.
“Our total foreign debt is $30.8 million. It has decreased from the figure of $33.7 million…NIA domestic debt, that number stands at $449.4 million. When that is combined then, we have a total NIA debt of $480.3 million,” Brantley said.
It is for that reason, the IMF has reiterated its call for governments to increase buffers for shocks to, among other things, fight Climate Change.
“Reducing debt and rebuilding buffers to respond to future shocks will require a mix of fiscal consolidation and growth enhancing structure reforms. Accelerating investment in climate change adaptation and the green transition is essential; and the regulation and supervision of credit unions also need strengthening given their growing importance in some countries,” Kozac said.
