A communique issued after Friday’s 109th Meeting of the Monetary Council of the Eastern Caribbean Central Bank (ECCB), called attention to the risk posed to the region’s economies by this year’s hurricane season
“The above-average 2024 Atlantic hurricane season is one of the most significant downside risks for ECCU economies,” the communique observed.
According to the document, this was thrown into sharp relief by the destructive passage of Hurricane Beryl in Grenada and Saint Vincent and the Grenadines in July.
Recorded as the earliest Category 5 hurricane before decreasing to Category 4, Beryl caused widespread devastation in Grenada, severely impacting the islands of Carriacou and Petit Martinique.
Saint Vincent and the Grenadines also experienced widespread infrastructural damage, with 90% of housing damaged or destroyed across Union Island, Canouan Island, and Mayreau.
The Atlantic Hurricane Season officially runs from June 1 to November 30 annually.
Aside from the risk posed by hurricanes, the ECCB Monetary Council Communique described the ECCU’s economic outlook as ‘broadly positive’.
“The pace of economic activity is expected to accelerate in 2024 and currently projected around 5 percent,” the document stated.
It also noted that tourism and domestic-related construction activity continue to propel ECCU growth.
“The construction sector is being buoyed by home construction, which has benefitted from increased credit to households. However, construction activity related to foreign direct investment (FDI) remains depressed,” the communique revealed.
In addition, the document highlighted the need to address several structural issues to unlock the ECCU’s growth potential.
They included high indebtedness, skills deficits, rising homicide rates, climate vulnerability, competitiveness, and productivity challenges.
