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Sir K. Dwight Venner |
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The Eastern Caribbean Central Bank’s Annual Report for 2009/2010 has forecast a bleak economic outlook for St. Kitts and Nevis, and its fellow OECS member countries.
The banks’ yearly report and economic review for the year ending March 31, 2010 indicated a decrease in economic activity for 2009, and predicted continued economic hardship for Eastern Caribbean Currency Union (ECCU) member countries in 2010.
According to Eastern Caribbean Central Bank (ECCB) Governor Sir K. Dwight Venner, “Declining foreign exchange receipts from tourism, foreign direct investment and remittances had an impact on the growth performance of the Currency Union with a contraction in economic activity of approximately 7.4% being recorded in 2009. The Eastern Caribbean Currency Union will continue to face tremendous challenges over the next few years. The current crisis is not over and we are projecting a contraction in economic activity of approximately 2.4% in 2010.”
There was more bad news contained in the report as Venner disclosed that government revenues had decreased, there had been a fall in employment, and an increase in poverty levels in member countries. ECCU members also face dwindling foreign exchange revenue and remittances, as international sources continue to experience recession.
Another challenge emerging from the global economic crisis is the likelihood that more developed countries will significantly reduce or cease consigning aid to smaller developing countries.
As its member countries continue to grapple with the effects of the global crisis, the bank has stepped up its efforts to assist them in debt management.
“The ECCB has accelerated its work in debt management through a project funded by the Canadian International Development Agency (CIDA). The objective of the project is to address the debt issues of member countries in order to achieve the target, set by the Monetary Council of a debt-to-GDP ratio of 60% by the year 2020,” Venner announced.
In outlining the way forward for the region, the bank Governor said the recently ratified Economic Union Treaty will allow for effective coordination and efficient implementation of policies, programs, and projects which can “facilitate economic growth and social development”.
“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,” he said. |
