Regional economies recovering

Eleven Caribbean Development Bank (CDB) borrowing member states posted positive growth in 2002, the Bank has reported. In releasing new financial data on the performance of Caribbean economies last year, the Bank listed foremost among the challenges prevailing uncertainty following the September 2001 United States terrorist attacks, a subsequent decline in travel and international pressure on the region’s international business sector.

Despite these challenges, Trinidad and Tobago, Jamaica and Guyana managed to record higher levels of economic activity than the previous year. The CDB reported that the economy of Trinidad and Tobago grew by 2.7 per cent due to a strong performance in the petroleum sector, while Jamaica posted a 1.3 per cent increase as a result of its communications, electricity and financial services and Guyana one per cent increase based on growth in agriculture. In terms of other more developed countries (MDCs), economic growth in Belize was estimated to be up by five per cent due to an increase in agricultural production. “Real output in the Bahamas and Barbados, however, is estimated to have fallen though not as sharply as in 2001,” the Bank said in a statement.

Available data for the British overseas territories also showed that activity generally increased, with the Cayman Islands, Turks and Caicos Islands and the British Virgin Islands leading the way. “Output in Cayman was up by 1.7 per cent, reflecting strong performances in the financial services, banking and construction while rising output in the Turks and Caicos is estimated to have been led by tourism-related construction and in the BVI by expansion in tourism and construction,” the Bank added. On the other hand, the Bank said real GDP in Anguilla contracted by between two and three per cent as a result of low output in tourism and construction that during 2001. Other small but independent Eastern Caribbean islands showed signs of recovery in 2002 - though modest when compared to the previous year - with real output in Antigua and Barbuda reaching 1.5 per cent, St. Vincent and the Grenadines 0.7 per cent, St. Lucia 0.5 per cent and Grenada less than one per cent. Growth in St. Kitts and Nevis however was also estimated to have slowed to 0.8 per cent while the economies of Montserrat and Dominica contracted. The Bank said overall performance in agriculture and construction rose notably while tourism recorded a significant decline. There was mixed performance in the manufacturing sector while the financial services sector remained under pressure due to demands from the Financial Action Task Force and the Organisation for Economic Co-operation and Development.