Business View Caribbean - November 2016 15
During the November 1-2 forum these economic
stakeholders exchanged views on the unique chal-
lenges and opportunities for the Caribbean region,
focusing on global and regional challenges such as
de-risking and stagnant growth.
IMF Deputy Managing Director, Tao Zhang, said
since the previous forum in Trinidad in September
2012, countries in the region have made progress
addressing important issues such as low growth and
high debt, however more work remains to be done.
“I would like to reiterate that the IMF is deeply com-
mitted to its work with the Caribbean countries. We
are committed to supporting policy reforms, and re-
construction efforts. Tides may shift, seas may rise,
but the Fund’s unwavering commitment to the re-
gion will remain unchanged,” he said.
According to the IMF, shifting global trends have
contributed to the subdued growth recovery in Ca-
ribbean economies, thus 2016 is proving to be an-
other year of lackluster growth. The withdrawal of
correspondent banking relationships presents clear
and imminent challenges to the Caribbean, despite
some countries in the region having stepped up ef-
forts to reduce gaps in their regulatory and supervi-
sory frameworks.
Zhang said the IMF is working with national authori-
ties and regional and global organizations to provide
technical assistance to strengthen these frame-
works. “We believe a durable solution to this issue
requires dialogue between countries, regulators and
banks, and increased information exchange. This
can help clarify regulatory expectations, build trust,
facilitate capacity building, and share best practic-
es,” he said.
Some other regional challenges discussed include
natural disasters, and a weak financial sector. Zhang
also noted the pervasive problem facing a number
of the Caribbean countries - the challenge of sus-
taining fiscal adjustment measures aimed at public
debt reduction amid weak economic growth.
The IMF Deputy Managing Director highlighted Ja-
maica, Grenada, and St. Kitts and Nevis as some
clear success stories of having achieved important
results reducing their fiscal and external vulnerabili-
ties over the last few years.
Zhang said, “Our work continues in the Caribbean
by providing policy advice, technical assistance and
training, and by providing financing. Whatever new
challenges arise, we will work together with you to
find solutions,” he concluded.
