CDB President calls for resilience,
transformation to drive regional
economic growth
Although grappling with challenges
related to climate change, wide
fiscal deficits and high public debt,
as well as high unemployment, the
Caribbean Development Bank (CDB)
earlier this year projected that the
region’s economy is expected to
grow by 2% in 2019. its home-grown economic reform
programme.
CDB President, Dr. Wm. Warren
Smith, shared the Bank’s forecast at
its Annual News Conference, held
in Barbados. Growth in Guyana, recorded at
3.4%, was mainly due to increased
construction activity, in advance of
the first commercial production of
oil in 2020.
“Despite projections of deceleration
in global economic activity, the
2019 economic outlook for our
Borrowing Member Countries is
positive. CDB is projecting that real
GDP growth will be around 2%,
as construction, tourism, and the
extractive industries such as gold
and oil are expected to expand,”
Smith said.
The President outlined that the
majority of the Bank’s Borrowing
Members recorded economic
growth averaging 1.9%, compared
with 0.5% in 2017. He noted
that the fastest-growing regional
economies of 2018 were Antigua
and Barbuda, Grenada, Guyana.
Grenada’s region-leading
performance of 5.2% continued
a five-year positive trend as that
country continues to experience
the financial growth coming out of
Reconstruction efforts led the way
to 3.5% growth in Antigua and
Barbuda, as the country rebuilt and
recovered following the passage of
Hurricane Irma on Barbuda in 2017.
Conversely, in his review, Smith
noted that in Anguilla and
the British Virgin Islands, the
devastating 2017 hurricane season
stymied economic growth as visitor
arrivals declined sharply – by
40% and 50% respectively, due to
extensive damage to hotel stock.
A fall in construction activity as
well as the impact of the fiscal
consolidation led to economic
contraction in Barbados, despite a
modest increase in tourist arrivals.
In the face of these mixed fortunes,
the President called for a dual
strategy of resilience-building
and transformation to accelerate
growth in the Region and to
ensure that economic gains can be
sustainable.
He highlighted the Bank’s ongoing
work and partnerships to build
climate resilience. These include
an agreement with the United
Kingdom’s Department for
International Development which
added £30 million to the United
Kingdom Caribbean Infrastructure
Fund for reconstruction in Barbuda
and Dominica.
CDB will also administer the
Dominica Disaster Recovery and
Resilience Fund established and
funded by the Government of
Canada, which will enhance post-
disaster response, build more
climate-resilient schools and
empower communities across the
country.
The Bank also signed an agreement
with the Green Climate Fund which
will facilitate more climate finance
projects in the Region.
Calling for transformation to
address the increasingly complex
challenges Caribbean countries
faced, Smith noted that the process
has already been taking shape.
“As our institution approaches its
50th year, digital transformation
and innovation have moved
to the top of our agenda. This
means leveraging technology to
deliver higher-quality service and
greater value to our members and
partners. It is important that CDB
remains the development partner
that Caribbean Governments turn
to first for solutions—whether they
be funding, advice or technical
assistance,” he said.
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CARIFORUM Member States sign Agreement to preserve
trade with the United Kingdom after Brexit
CARIFORUM Member Countries in March signed
an Agreement with the United Kingdom which will
govern their trade after the UK leaves the European
Union. Barbados, Belize, Dominica, Grenada, Guyana,
Jamaica, Saint Lucia, St. Kitts and Nevis, and St.
Vincent and the Grenadines were the signatories from
CARIFORUM (a grouping of CARICOM Member States
and the Dominican Republic). Other Member Countries
have signaled their intention to sign.
www.slyoumag.com | July-August 2019
SL-YOU | Business, People & Lifestyle 39