ECCB 2020-2021 Annual Report and Statement of Accounts

GROWTH, COMPETITIVENESS AND EMPLOYMENT

Support The Oecs Commission In The Continued Refinement Of The OGDS And Implementation Of An Eccu-Wide Economic Development Plan (Including Initiatives, Targets And Assigned Responsibilities) Joint Policy Work with the OECS Commission to Inform Monetary Council Policy Sessions As mandated by the Monetary Council at its 96 th meeting held in July 2020, the Bank has engaged in policy work with the OECS Commission to propose strategies with pointed actionable recommendations for addressing the economic challenges posed by the ongoing COVID-19 pandemic. The collaborative work focuses on five key areas: Tourism, Food Security, Labour Markets, Digital Transformation, Support to Businesses and Citizenship by Investment Programmes (CIPs). The Bank undertook research in the area of labour markets, competitiveness, enhancing the tourism value chain, sustainable economic development, population growth and conducted growth decompositions exercises for the economies of the ECCU. Joint research with the OECS was also a highlight of the Bank’s collaboration with other development partners. Provide Technical Assistance, Policy Advice And Consultations To ECCU Member Countries On How To Expand Existing And Attract New Sectors And Improve Regional Competitiveness And Ease Of Doing Business The Bank prepared background papers on growth and competitiveness for consultations with the Financial Secretaries. The research papers on Enhancing the Tourism Value Chain and Reinvigorating ECCU Tourism: Current Trends and Strategies provided insight on the improvement of the tourism industry – a significant contributor to foreign exchange and economic activity in the region. Although the pandemic did not allow for physical missions, the Bank provided technical assistance to member countries through virtual missions and online platforms. Collaborative work progressed with the Fiscal Responsibility Oversight Committee in Grenada on the completion of their annual report, the documents related to Medium Term Fiscal and Development Strategies of Antigua and Barbuda and the Medium Term Economic Framework of Anguilla. During the year, the Bank also worked with the Social Security Systems of the ECCB member countries and The World Bank Treasury to establish the Reserve Advisory Management Partnership (RAMP) for the Social Security Systems. This programme provides guidance to Social Security Systems on improving financial soundness and stability as well as providing training and other capacity building opportunities to the Board of Directors, Executive Management and staff of the systems. In addition, the Bank continued to facilitate meetings of the Directors of Social Security Systems. Those meetings allowed the ECCB to work with the Social Security Systems to meet their various needs and to facilitate, where necessary, their collaboration with other key parties. As the COVID-19 pandemic unfolded in 2020, the ECCB and many member countries, transitioned to a remote or virtual working environment. This affected the work programmes of all statistical stakeholders and alternate means of executing tasks were instituted. In an effort to guide the policy discussions within the ECCB, worst case scenarios for the Gross Domestic Product (GDP) for 2020 and 2021 for the member countries and the ECCU were prepared. The focus was on the tourism industry and its impact on other industries given the ongoing pandemic. The results indicated significant decline in economic activity for the member countries and the ECCU as the pandemic caused major stoppages in routine activities, lockdowns, border closures and limitations on mass gatherings. For the national accounts work programme, the annual compilation of the GDP estimates was impacted. Only three member countries were able to complete and disseminate finalised GDP data during 2020. The ECCB produced GDP estimates using appropriate indicators for the remainder of the member countries so that the dissemination of this important statistical output was available for policy making and advice during the pandemic. Two further revisions and updates were made to the GDP Projections for 2020 based on data for January to June 2020 and January to September 2020. To supplement macro-economic analysis, the Bank continued with the administration and conduct of the bi-annual Business Outlook Survey. Contracted consultants within the member counties were advised to utilise social distancing measures to conduct the surveys instead of the usual in-person interviews. In spite of the mode of delivery used to execute the survey in 2020, the overall response rates remained high at 87.5 per cent for the January to June 2020 survey and 95.5 per cent for the July to December 2020 survey.

EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2020/2021 18