Structural Constraints and Macroeconomic Policies to Promote Sustainable Growth in the Caribbean

摘要

Since the global economic crisis of 2008/2009, average economic growth rates in the Caribbean region have remained relatively low and at least two countries are in recession. The goods-exporting economies, with the exception of Guyana, have been affected by the decline in commodity prices, while the service-exporting economies have not attained levels of growth experienced in the pre-crisis period. It is argued that a macroeconomic policy aimed at sustainable growth must be informed by the underlying factors driving debt accumulation and fiscal instability. In addition, the Caribbean faces the effects of climate change and natural hazards and therefore adaptation and disaster risk management must be key strategies to promote sustainable growth. The article does not deny the need for fiscal restraint but suggests that the challenges are also due to structural factors and outlines a number of strategies, including the appropriate policy environment, to address the lack of sustained growth in the Caribbean.