ISSN 1728-5445

eclac subregional studies and headquarters

SERIES PERSPECTIves for the caribbean

Economic Survey of the Caribbean 2017

Dillon Alleyne Michael Hendrickson Sheldon McLean Machel Pantin Nyasha Skerrette Don Charles 61

Economic Survey of the Caribbean 2017

Dillon Alleyne Michael Hendrickson Sheldon McLean Machel Pantin Nyasha Skerrette Don Charles

2 This document has been prepared by Sheldon Mc Lean, Coordinator of the Economic Development Unit, Economic Commission for Latin America and the Caribbean (ECLAC) subregional headquarters for the Caribbean, with assistance of Dillon Alleyne and Michael Hendrickson, Economic Affairs Officers, Machel Pantin and Nyasha Skerrette, Economic Affairs Assistants and Don Charles, Economic Research Assistant. The views expressed in this document, which has been reproduced without formal editing, are those of the authors and do not necessarily reflect the views of the Organization.

United Nations publication ISSN: 1728-5445 (electronic version) ISSN: 1727-9917 (print version) LC/TS.2017/140 LC/CAR/TS.2017/9 Distribution: Limited Copyright © United Nations, January 2018. All rights reserved. Printed at United Nations, Santiago S.17-01035

Applications for authorization to reproduce this work in whole or in part should be sent to the Economic Commission for Latin America and the Caribbean (ECLAC), Publications and Web Services Division, [email protected]. Member States and their governmental institutions may reproduce this work without prior authorization, but are requested to mention the source and to inform ECLAC of such reproduction. ECLAC – Studies and Perspectives Series – The Caribbean – No. 61 Economic Survey of the Caribbean 2017

Contents

Abstract ...... 5 I. Subregional analysis and performance ...... 7 A. Caribbean growth performance and prospects ...... 10 B. Unemployment ...... 11 C. Fiscal policy and public debt ...... 13 1. Fiscal flexibility ...... 15 2. Public debt ...... 16 3. Debt service payments ...... 17 D. , domestic credit and inflation...... 20 1. Interest rates ...... 20 2. Money supply and credit ...... 22 3. Inflation ...... 23 E. Balance of payments ...... 25 1. Current account ...... 25 2. Foreign direct investment ...... 26 3. Terms of trade ...... 27 II. Country briefs ...... 29 A. Bahamas ...... 29 1. General characteristics of recent trends ...... 29 2. Economic policy ...... 30 3. Trends in the principal variables ...... 31 B. ...... 31 1. General characteristics of recent trends ...... 31 2. Economic policy ...... 32 3. Trends in the principal variables ...... 33 C. ...... 35 1. General characteristics of recent trends ...... 35 2. Economic policy ...... 35 3. Trends in the principal variables ...... 36

3 ECLAC – Studies and Perspectives Series – The Caribbean – No. 61 Economic Survey of the Caribbean 2017

D. Eastern Caribbean Currency Union (ECCU) ...... 37 1. General characteristics of recent trends ...... 37 2. Economic policy ...... 38 3. Trends in the principal variables ...... 39 E. ...... 41 1. General characteristics of recent trends ...... 41 2. Economic policy ...... 41 3. Trends in the principal variables ...... 43 F. ...... 44 1. General characteristics of recent trends ...... 44 2. Economic policy ...... 44 3. Trends in the principal variables ...... 47 G. ...... 48 1. General characteristics of recent trends ...... 48 2. Economic policy ...... 48 3. Trends in the principal variables ...... 50 H. ...... 51 1. General characteristics of recent trends ...... 51 2. Economic policy ...... 51 3. Trends in the principal variables ...... 53 Studies and Perspectives Seri