Economic growth in the Caribbean expected to top 3.5% in 2013 – IMF

The International Monetary Fund (IMF) says Caribbean countries will experience economic growth of just over 1 percent this year – and this even as the Caribbean and Latin America will record half a percent economic growth in 2013.

The growth will be supported by stronger external demand, favorable financing conditions and the effects of earlier policy easing in some countries.

In its Regional Economic Outlook for the Western Hemisphere, the IMF said that the Caribbean region and Latin America would experience growth from 3 percent in 2012 to 3.5 percent this year.

However, in much of the Caribbean, high debt and weak competitiveness will continue to constrain growth and that these economies are projected to grow by about 1.25 percent in 2013 up from 0.5 percent percent in 2012, as external demand strengthens gradually.

The key challenge for these countries remain broadly unchanged, reducing high public debt, containing external imbalances, and reducing financial sector vulnerabilities, the IMF said.

External risks to the near-term outlook have receded and that policy actions in the Euro area and the United States have removed immediate threats to global growth and financial stability. -(CMC)