Bold new strategies needed

The IMF said that growth in the Caribbean has stagnated in the last two decades, except in commodity exporters.

The last rapid growth spurt in the 1980s was fueled mainly by expansion of tourism, banana production, and public investments, it said, noting that many Caribbean economies face high and rising debt to gross domestic product (GDP) ratios that jeopardize prospects for medium-term debt sustainability and growth.

In 2012, overall public sector debt was estimated at about 79 per cent of regional GDP.

In a paper entitled “Caribbean Small States –Challenges of High Debt and Low Growth,” the Washington-based financial institution said many Caribbean small states are at a critical juncture and bold strategies to address the challenges are essential.

Reprinted from CanaNews


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