Strong Economic Growth Forcast for 2022 in the ECCU

The economic growth for the region is forecast to be strong in 2022 at 6.4 per cent, moderating to 5.9 per cent in 2023.

This was contained in the communique of the 103rd Meeting of the Monetary Council of the Eastern Caribbean Central Bank (ECCB) which was held on November 25 via video-conference.

However, the forecast is subject to downside risks in light of the challenging global economic situation.

Under the heading of Growth and Competitiveness, the communique reveals that Despite higher fuel prices and weakening global economic growth, Tourism in the ECCU is relatively resilient. Although tourism arrivals (stayovers) are still below pre-pandemic levels, the tourism industry is expected to continue strengthening.

Prospects for further growth in tourism will be contingent upon the impact of any new COVID-19 variants, as well as on any further slowdowns in source markets.

Construction activity is being bolstered by capital investment from member governments and domestic home construction.

With the further easing of COVID-19 protocols by major cruise lines and ECCU member countries, cruise arrivals are expected to continue increasing in 2022 and 2023.

According to the communique, Recovery has firmed in the ECCU, but the region will continue to grapple with the effects of high inflation and the challenges related to air and sea connectivity.