St. Kitts and Nevis (WINN)—The International Monetary Fund (IMF) is crediting the Eastern Caribbean Currency Union (ECCU) for helping maintain strong stability across a shock-prone region, even as global uncertainty continues to pose a significant risk.
Following its consultations with officials at the Eastern Caribbean Central Bank, the fund’s assessment shows the ECCU economy grew by about 3% in 2025, supported by strong tourism activity and ongoing construction.
Inflation eased in line with global fuel and food prices, while the region’s foreign reserves remained stable, reinforcing confidence in the Eastern Caribbean dollar.
During the entire review, the fund found that government debt remains a major concern, warning that debt reduction has slowed across the union, with several member states at risk of missing the region’s target of keeping public debt below 60% of GDP by 2035.
Further, the fund noted in its consultation report that the region’s heavy reliance on tourism, imports and foreign investment continues to leave economies exposed to external shocks and natural disasters.
Growth, meanwhile, is projected to moderate to around 2.5% in the coming years, as tourism’s nearest capacity and productivity challenges persist.
The assessment is urging governments to strengthen fiscal discipline, improve financial sector oversight, and deepen regional policy coordination.
It also recommends reforms to boost trade, modernise workforce skills, expand investment in renewable energy, and improve data systems to guide economic decision-making.
Officials say coordinated action will be essential to safeguard long-term stability and build a more resilient regional economy.
