Business
Modest growth expected in 2012 for CARICOM – CDB
“The recovery in regional tourism is therefore expected to remain slow, in line with expectations for global demand, while no material pick-up in foreign direct investment is anticipated, reducing the likelihood of a boost to the balance of payments and, indirectly, to construction and other real sector activity.
“Consequently, most borrowing member countries are projected to grow modestly, by 1-2.5 percent in 2012. While dampening growth prospects in commodity-based borrowing member countries, the projected moderation in global commodity prices should have a positive impact on the balance of payments by reducing import values, which should in turn help to ease domestic … pressures within the borrowing member countries.
But the CDB said that the context framing regional prospects over the short to medium term remains one of limited fiscal space, structural weaknesses in the financial sector and an uncertain global outlook, with additional downside risks related to the region’s vulnerability to natural hazards and climate change impacts.
“Going forward, this context will continue to drive BMCs’ policy imperatives of reinvigorating growth and building resilience to exogenous shocks,” the bank said. (CMC)
