ECCB Reports Positive Growth Outlook for the Region

• According to the Eastern Caribbean Central Bank (ECCB¹), the Eastern Caribbean Currency Union (ECCU) saw notable growth in 2024, and is projected to have a positive economic outlook for 2025, ranging between 3.5% and 4.5%. Expansion in the tourism industry, post-hurricane reconstruction efforts, and large-scale infrastructure investments across member countries are expected to drive the expansion.
• The ECCB's positive growth projections for the ECCU come amid a global environment marked by economic uncertainty, with risks such as inflation and geopolitical tensions posing challenges to international markets. However, the ECCU’s credit conditions, coupled with efforts in infrastructural projects and financial sector reforms are seen as opportunities for enhanced regional stability.
• The forecast was part of the Governor's Report presented during the 110th meeting of the Monetary Council of the Eastern Caribbean Central Bank (ECCB) held on February 14, in St Kitts.
• Among key highlights of the meeting was the continued strength of the Eastern Caribbean dollar (EC$), with reserves at EC$5.5Bn as at February 2025. The region's banking sector remains stable, and liquidity remains robust, with strong capital reserves supporting ongoing growth, the ECCB said.
• The ECCU's fiscal situation also showed signs of improvement in 2024, with increased economic activity and stronger fiscal management leading to an increase in funds raised through the Regional Government Securities Market.
• Looking forward, the ECCB stated next steps include addressing critical challenges such as high intra-regional air connectivity costs, which hinder trade and regional competitiveness.

(Source: Caribbean Loop News)

 

^[1]The Eastern Caribbean Central Bank (ECCB) is the central monetary authority established in 1983 to oversee the Eastern Caribbean Currency Union (ECCU), which comprises eight member countries sharing the Eastern Caribbean dollar (EC$) as their common currency.