C’bean should rebuild economic resilience and flexibility - IMF

C’bean should rebuild economic resilience and flexibility – IMF

Apr 29, 2012 News

Growth in the Caribbean continues to be firm despite a slowdown in the second half of 2011 due to tightened policies following the post-crisis rebound and the effect of global uncertainties, according to the International Monetary Fund (IMF)’s latest Regional Economic Outlook for the Western Hemisphere states.
The Fund projects that the region will grow at 3.7 percent in 2012, and 4.1 percent in 2013, up modestly from forecasts published in January,
While the economic challenges facing Latin America and the Caribbean differ across countries, one theme is common: they should rebuild policy space and be watchful for downside risks. Supportive external conditions facing some countries–abundant and cheap external financing, and favorable commodity prices—may persist for a while, but are likely to dissipate over time,
“Conditions remain favorable. The double tailwinds of easy external financial and high commodity prices are likely to persist for a while but not forever,” said Nicolás Eyzaguirre, Director of the IMF’s Western Hemisphere Department at the presentation of the report in Bogotá, Colombia.
“Now, the challenge for many countries is to take advantage of this environment to rebuild buffers, to enhance the resilience and flexibility that has served them so well the last few years,” he continued.
The regional outlook report indicates that near-term risks are still tilted to the downside, and revolve most notably around possible renewed tensions in European markets and an oil price shock. But the report also notes different conditions with the region that imply differing policy challenges.

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