Caribbean growth steady, but slow

The Caribbean is expected to continue to have steady growth, although it has been sluggish in 2019, said Dr Dillion Alleyne, deputy director for the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) subregional office.

While identifying main issues the Caribbean experienced in 2018, Alleyne said although growth had been weak but positive, investment was up for some Caribbean countries and the debt burden is beginning to fall, which is a good thing.

Speaking on Wednesday at ECLAC’s annual report at its office on Chancery Lane, PoS, Alleyne said there are good prospects for some countries, especially for Guyana.

“While the de-risking phenomenon had eased, it could resurface to target the offshore financial sector. Other external risk factors include volatility of commodity prices, hurricanes, trade wars and a global economic slowdown. As you know, Guyana had the discovery of oil and the expectation is that the economic performance is much better."

He said the growth rate is increasing but remains sluggish in many Caribbean countries, with Antigua and Barbuda, Grenada, Dominica and Guyana proving to be exceptions. The first three economies are boosted by Caribbean Basin Initiative (CBI) funded projects (a US trade policy) and reconstruction efforts.

Guyana is attracting foreign direct investment (FDI) ahead of oil production.

Alleyne said strengthening investment is a key condition for inclusive and sustainable economic growth.

TT is expected to have 1. 6 per cent GDP growth for 2019.

Alleyne said there is a need for the government to place diversification higher on its agenda, however the process of diversification will take time and it is not an immediate outcome.

“I think it has to go across administrations, not just the government of the day. They have to commit themselves to a few sectors in activities and consistently encourage entrepreneurial activities in those areas."

While this happens from time to time, he said, consistency is needed. "Everyone has to understand what the goals are and we have to continue to look for more opportunities. At the end of the day it is widening what I call the entrepreneurial envelope. More people have to come into entrepreneurship to be able to get diversification going.”

In Dominica, for example, some of their success has been due to citizens by investment programmes that have been quite successful.

“Antigua and Barbuda, Grenada and Dominica have been very successful in their citizens by investment programmes but we think there must be more coordinated in rolling them out. The programmes vary – essentially people who are coming in to invest, for example, would put a sum of money aside and then they get citizenship. I think this is a programme that could be used also to source talent. Entrepreneurial talent, scientific talent and other types of talents. TT may have other options. I don’t think the programme suits everyone.”