BASSETERRE, St. Kitts – PROLONGED economic woes have been the forecast for the islands of the Eastern Caribbean Currency Union (ECCU), as economic tightness and uncertainty are expected to prevail over this and upcoming years.
This is according to Eastern Caribbean Central Bank’s (ECCB’s) Governor Sir K. Dwight Venner when he delivered the ECCB 2009/2010 Annual Report on Tuesday, June 29.
Amid a lengthy global economic crisis, the region can anticipate a further breakdown as Venner projected a contraction in economic activity of approximately 2.4 per cent this year. This, he explained, is as a result of a combination of problems.
“Government revenues have decreased and there has been a fall in employment and an increase in poverty levels in member countries. The economies are extremely small, open and vulnerable, as the crisis has clearly revealed, and will need to be substantially transformed if they are to exhibit significant levels of resilience,” Venner noted.
Regional heads have been making much progress in their respective countries and have even committed to a harmonious approach to respond to such economic challenges, mitigating the effects of the crisis. This work includes the move toward an economic union or member states of the Organization of Eastern Caribbean States (OECS) and the promotion of an Eight-point Stabilisation and Growth Plan.
While the work of the sub-region’s authorities has positioned the member countries on a path to sustained growth by 2012, the volatility of international markets has not been favourable to the region.
“The Eastern Caribbean Currency Union will continue to face tremendous challenges over the next few years. The current crisis is not over...The international outlook is uncertain as the advanced countries are not completely out of recession and are also experiencing extremely high and unprecedented levels of fiscal deficits and debt,” Venner said.
Another problem emanating from the international economy is the drop in and possible end of foreign aid. Venner informed that advanced countries struggling with debt problems and a resultant rise in unemployment would naturally attract greater amount of attention and aid, thereby reducing the possible aid the region could access.
“In the final analysis,” Venner concluded, “the challenge for us is the integration and transformation of our economies into diversified, highly productive and internationally competitive entities, which can improve the standard of living and quality of life of our citizens of the Eastern Caribbean Currency Union. This we hope to achieve by the year 2020.”
