The Barbados-based Caribbean Development Bank (CDB) says despite the forecast of deceleration in global economic activity, the 2019 economic outlook for its borrowing member countries (BMCs) is positive, predicting economic growth of more than two per cent.
In its 2018 Annual Report released at the start of the bank’s 49th Annual Board of Governors Meeting, the CDB said the world gross domestic product (GDP) is expected to decline to 3.5 per cent this year, from 3.7 per cent in 2018, and blamed various situations like Britain’s continued efforts to leave the European Union and the economic slowdown in China.
The CDB, the region’s premier financial institution, said that the Caribbean’s exposure to these risks is high as is its vulnerability to weather-related events. It said in addition, some institutional weaknesses need to be addressed to improve the delivery of critical economic and social projects
“Nevertheless, GDP is projected to rise by 2.1 per cent as construction, tourism, and the extractive industries, such as gold and oil, expand.”
The CDB said that Barbados is the only BMC in which economic activity is not expected to increase in 2019 and that ongoing fiscal retrenchment is expected to cancel out strong tourism performance.