BASSETERRE, St. Kitts - MEMBER states of the Eastern Caribbean Currency Union (ECCU) continue to face hard economic times, high poverty rates and rising levels of unemployment.
This was revealed yesterday (Jan. 28) by Governor of the Eastern Caribbean Central Bank, Sir K Dwight Venner while giving his report for the previous fiscal year.
“It is by now evident that the year 2013 was another challenging year for the Currency Union. Our member countries are still grappling with low economic growth, persistent fiscal deficits, rising debt levels, high unemployment and high poverty rates and some fragility in the financial sector.”
He explained that member states have been left vulnerable, which has become evident, due their small size and their openness to external shocks and natural disasters.
Explaining how the ECCU’s economic and financial developments are shaped, Sir Dwight said: “Economic and financial developments in the ECCU continue to be shaped by the global economic environment which is still uncertain, with growth for 2013 likely to be lower than previously anticipated.”
He noted that although there had been an “uptick” in the housing market, business and consumer confidence were adversely affected.
“In the USA, our main trading partner, a major contributor to the slowdown was the fiscal policy stance of the Federal Government and the political gridlock which had adverse effects on business and consumer confidence, despite the uptick in the housing market and the easing of credit conditions.
He added that in Europe, “uncertainties persisted and unemployment rates remained elevated, while in the emerging economies there was a slowing down in economic activity”.
The Governor stressed that in 2013 the Union celebrated 30 years of existence of the Easter Caribbean Central Bank, and one of its greatest achievements over that time is being able to maintain stability in the currency and financial sector.
