IMF: OECS Economies OK

Despite a very damaging hurricane season, economic activity within the sub-regional Organization of Eastern Caribbean States (OECS) remained robust in 2004 and is expected to continue growing in 2005, assessed the International Monetary Fund (IMF).

The IMF recently presented to the national and regional authorities in the six IMF member countries of the Eastern Caribbean Currency Union (ECCU), as well as to officials from the Eastern Caribbean Central Bank (ECCB), the Organization of Eastern Caribbean States (OECS), and the Caribbean Development Bank its assessment of the economic situation and prospects, as well as policy recommendations for consideration by the member countries of the ECCU.

Despite a very damaging hurricane season, economic activity remained robust in 2004 and is expected to continue growing in 2005. Growth has been driven by construction and a sharp revival of tourism, the IMF said.

In view of the continued growth in the region´s major tourism markets, the United States and the United Kingdom, a similar growth rate is projected for the ECCU this year, the IMF forecast noting that supported by the regional monetary arrangement at the ECCB, inflation remains low and external foreign currency reserves have risen.

Public debt has risen in most countries, averaging nearly 115 per cent of Gross Domestic Product (GDP) in the IMF member countries.