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IMF needs to provide more support to Guyana, other Caribbean economies – Finance Minister
The Guyanese economy and those of Caribbean member states are currently facing a number of external shocks. However, to help those nations navigate through these trying times, Finance Minister Winston Jordan is of the view that the
Finance Minister, Winston Jordan
International Monetary Fund (IMF) needs to provide more appropriate policy options and support.
The economist made this remark, among others, during a meeting that was held in Washington DC, USA. At that event, Jordan spoke on behalf of Guyana and the rest of the Caribbean on issues between those states and the IMF, as well as where more help can be provided in certain areas.
Jordan said that Caribbean economies are facing a number of challenges; challenges that are neither being grasped nor addressed in a timely and effective manner.
He said that among the most pressing of these matters is the downturn in Caribbean economies, occasioned by external shocks; high and rising levels of public debt; correspondent banking relationships; climate change and recurring weather-related challenges.
The Finance Minister said that the consequences of this failure to deal definitively with these issues are self evident.
“Our people continue to suffer immensely while valuable resources and time are devoted to what we regard as sub-optimal solutions. Eight years after the Global Financial Crisis, in 2008, the slow pace of growth in the world economy has placed a strain on many Caribbean economies. Given our small and open nature, we remain vulnerable to the external forces in the world economy.”
The Finance Minister noted that for 2016, the IMF predicts that the world economy will grow by 3.1 percent, the same level achieved in 2015, with considerable downside risks.
Jordan said, “In Guyana, as well as Belize, the end of the commodity boom years has put pressure on some of our traditional agricultural sectors, and resulted in lower export values.
He noted, however, that commodity prices have shown some recovery in 2016.
“But even as this occurred, the global economy experienced another shock—the United Kingdom’s vote to exit the European Union (“Brexit”). The results of the vote shook global financial markets: volatility spiked, and the British pound fell against major world currencies.”
He said that financial markets stabilized in the weeks following the vote, and added that economists believe Brexit could have longer-term negative impacts on growth of the British, and global, economy.
To date, Jordan said, the impact of Brexit on the Caribbean has been muted.
With the aforementioned in mind, the Finance Minister said, “To help Caribbean economies successfully navigate these external shocks, the IMF needs to provide more appropriate policy options and support; including support for expanding fiscal space to enable countercyclical policies, and developing more diversified economies through better business environments, enhancement of human capital, and greater economic integration within our region.”
The Finance Minister said that many Caribbean economies are aggressively pursuing policies to address these formidable challenges. He said however, if they are to build a strong and resilient regional economies, the IMF must play a stronger role as well.
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