Business
Modest growth expected in 2012 for CARICOM – CDB
Of the countries recording contractions in their economies, -Anguilla, Antigua & Barbuda, St. Kitts & Nevis, St. Vincent & the Grenadines and Trinidad & Tobago -, the downturn in Trinidad & Tobago deepened, but the declines in the other four were moderate relative to previous years.
The CDB said that the fledgling recovery was mainly underpinned by moderate increases in tourism or, in the case of less tourism dependent, more commodity-based member countries, improvements in agriculture and mining, as well as related manufacturing activities.
It said that for some borrowing member states, construction and quarrying also contributed positively to growth.
“The general recovery in economic output and implementation of policy reforms mostly resulted in improved fiscal performances. This notwithstanding, many borrowing member countries (BMCs) confronted stubbornly high debt ratios that, together with sustained high unemployment rates and weak indicators of financial sector activity and stability, showed the lingering impact of the recession.”
The CDB said there were also pre-existing structural vulnerabilities, including susceptibility to natural disasters and concentration on a narrow range of goods and services such as tourism and commodity exports as well as BMCs’ failure to implement critical policy reforms in the past.
“Furthermore, adverse global developments during the year, including the persistent macroeconomic weakness in advanced economies and resurgent international commodity prices, weighed heavily on balance of payments,” it added.
The regional development bank said that international developments will continue to shape regional outurns in 2012, with prospects for the region closely mirroring the global outlook.
