Caribbean economies turning corner

WASHINGTON (CMC):

THE INTERNATIONAL Monetary Fund (IMF) says that the Caribbean is beginning to turn the corner after a "long and deep recession".

In its latest 'Regional Economic Outlook', the Washington-based financial institution said weak external demand and high public debt levels have held back economic activity in much of the region for the last two years, "which has also been adversely affected by natural disasters".

It said tourism is "recovering gradually", with The Bahamas, Barbados, the Dominican Republic, and Jamaica observing a "faster and earlier pickup in tourist arrivals" than the islands of the Eastern Caribbean Currency Union.

The IMF said the Caribbean economy, excluding the Dominican Republic and Haiti, is projected to expand by an average of about two per cent in 2011, following a contraction of about 0.5 per cent last year.

"The recovery is supported by a mild improvement in labour-market conditions in advanced economies, as fiscal consolidation proceeds in most of the region," it said.