Search Results

You are looking at 1 - 2 of 2 items for :

  • "debt of the ECCU country" x
Clear All
International Monetary Fund. Western Hemisphere Dept.

of the capital program. Access to concessional financing for building resilience is key . A substantial part of the debt of the ECCU countries was contracted to respond to the impact of climatic events and our authorities know firsthand the imperative of building resilience. They welcome the establishment of the Resilience and Sustainability Trust (RST) which acknowledges the vulnerability of Small Developing States (SDSs) to external shocks but remain concerned that relatively high debt levels in ECCU countries may preclude them from gaining access to the RST

International Monetary Fund. Western Hemisphere Dept.
With ECCU economies slowly emerging from the pandemic with scars, the impact of the war in Ukraine is a setback to the nascent recovery. Higher food and energy prices, amid ongoing supply disruptions and intra-regional transportation bottlenecks, are raising inflation, eroding income, lowering output growth, worsening fiscal and external positions, and threatening food and energy security. As a result, inflation is expected to hover over 5½ percent in 2022. Real GDP is projected to grow by 7½ percent in 2022, leaving output still well below the pre-pandemic level. Fiscal deficits are projected to remain sizable, given continued pandemic- and disaster-related spending and temporary support to address rising living costs, thereby keeping gross financing needs and public debt at elevated levels in the near term. The financial system has remained broadly stable so far, with adequate capital and liquidity buffers, but nonperforming loans remain high and could rise further following the expiration of the ECCB’s loan moratoria program. The outlook is subject to large downside risks, primarily from further increases in commodity prices and new COVID variants amid vaccine hesitancy, in addition to the ever-present threat of natural disasters.