Presentations - 3rd Growth and Resilience Dialogue With Social Partners

Small States face unique challenges compared to larger economies, which necessitates targeted strategy for reforms.

• Small economies – in particular the island states -- face unique challenges arising from their remoteness, small populations, lack of economic diversification, high transportation and communication costs, and vulnerability to natural disasters.

• Private-sector-led growth and a diversified economic base can be difficult for small states to achieve.

• The narrow population base means a low demand for goods and services, which limits domestic production and international investment targeted at the local market.

• Production costs are generally high because of the lack of economies of scale.

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