BASSETERRE, St. Kitts, Apr 29, CMC – The St. Kitts-based Eastern Caribbean Central Bank (ECCB) Wednesday said it welcomes the report by the International Monetary Fund (IMF) that the growth in the economies of the Eastern Caribbean Currency Union (ECCU) is estimated to have moderated to 2.8 per cent last year.
The ECCU groups the islands of Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, St. Kitts and Nevis, St. Lucia and St. Vincent and the Grenadines.
The ECCB, which serves as a central bank for the independent countries of the ECCU, said that the IMF held discussions with several stakeholders across member countries in January and February this year.
“The 2026 Staff Report details the IMF’s findings from these engagements, which concentrated largely on strengthening long-term economic growth and development in the currency union,” it said.
“The ECCB acknowledges the report and concurs with the IMF’s assessment that the region continues to demonstrate significant macroeconomic stability, despite external shocks.
“Analysis by the ECCB indicates that real gross domestic growth (GDP) growth for the ECCU averaged an estimated 3.4 per cent over the period 2023 to 2025, mainly driven by robust activity in the Tourism industry. The Bank’s preliminary projections for the ECCU economy in 2026 show expected growth of 3.3 per cent. ”
It said that the region’s financial sector demonstrates sustained resilience, amidst significant macroeconomic and climate-related shocks. Inter alia, asset quality, credit growth and loan performance have improved. The stability of the banking system persists, with high levels of liquidity, strong capital buffers and improving profitability.
“The ECCB acknowledges the need to mitigate systemic data deficiencies that impede effective analysis and policy guidance in the region. The region will continue to collaborate with development partners on a number of initiatives to address data issues, including strengthening data collection and reducing the existing gaps.
“Regarding the performance of the ECCU and the way forward, the ECCB proposes full alignment with The Big Push agenda – to double the region’s economy over the next decade. The ECCU is actively implementing several initiatives towards economic transformation, which will continue to reshape the regional macroeconomic landscape.”
The ECCB said it “maintains a steadfast commitment to preserving the value of, and confidence in, our domestic currency,” noting that as of April 24, this year “the backing ratio stood at 99.04 per cent – well above the statutory requirement of 60 per cent.
“For almost 50 years, the exchange rate has been fixed at EC$2.70 to US$1.00, supported by a substantial level of foreign reserves, to cushion shocks. Despite ongoing uncertainty in the global economy, precipitated by the war in the Middle East and numerous other external shocks, the Central Bank’s reserve position has grown and currently stands at $5.9 billion”.
The ECCB said that as it continues to bolster regulation and supervision of the financial sector, several high-priority initiatives are gaining momentum.
It said progress is being sustained on the establishment and operationalization of the Office of Financial Conduct (OFC), noting that the primary purpose of the OFC is financial consumer protection, which is an important element of financial stability and resilience.
“A Financial Conduct Committee and Financial Dispute Resolution Commission will support the OFC in resolving complex complaints, discussions on pertinent matters and general decision-making. Five of the eight-member countries have completed the necessary legislative amendments for the OFC. The structure of the OFC has been approved and is scheduled for launch in the latter part of 2026.”
The ECCB said it is also making progress on other key initiatives toward financial sector resilience in the ECCU, including the establishment of Deposit Insurance, the ECCU Financial Literacy and Inclusion Strategy, the Credit Bureau and Secured Transactions and Collateral Registry Reform.
“Some countries have already enacted the Deposit Insurance Corporation Agreement Bill, geared towards protecting depositors,”it said “recognising that credit expansion is vital for the level of economic growth required for ‘The Big Push,’ the ECCB is dedicated to resolving lending barriers through enhanced financial data sharing.
The ECCB said that the ECCU governments remain committed to strengthening fiscal resilience and moving towards achieving the debt target.
“Our region’s debt-to-GDP ratio is estimated to have declined to 79 per cent at the end of 2025, from 88.2 per cent in 2020. This trajectory shows convergence towards the target, though not at the pace that we anticipate.
“Our region must continue to push forward with policies to advance fiscal resilience and achieve the debt-to-GDP target of 60 per cent by 2035. While most countries are making progress, the disruptions in global economic activity do not augur well for our region.”