Caribbean Seen Reliant on Investment

Caribbean countries will depend on their ability to maintain a high level of investment as they enter the hurricane season amid a global economic downturn that could hurt tourism and remittance flows, according to S&P. The sustainability of both domestic and foreign investment is especially important because exports, the other main driving force for GDP growth, are becoming more vulnerable to the negative external environment, says the agency. “Overall, we expect the commitment to fiscal consolidation to prevail, increasing policymaking transparency to boost investor support, and a timely monetary response to help maintain stability in the exchange market,” says S&P. All this should afford the small and open Caribbean economies “adequate protection against the rising winds from the North,” notes S&P, referring to hurricanes and economic turbulence.