Working Paper Series: Special Edition of 2016 to 2018 Interns

2.0 Stylised Facts The ECCU comprises of eight (8) member countries, namely: Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, Saint Kitts and Nevis, Saint Lucia and Saint Vincent and the Grenadines. The ECCU along with the British Virgin Islands and Martinique are jointly known as the Organisation of Eastern Caribbean States (OECS). The ECCU countries share a common central bank and a common currency, the Eastern Caribbean Central Bank and Eastern Caribbean Dollar respectively. 2.1 Overview of Economic Growth within the ECCU The ECCU has experienced both a secular decline and increased volatility in real GDP growth over the past two decades. The agricultural sector traditionally was the main ingredient for sustained growth, but the focus has shifted over time towards tourism which has been a critical source of foreign exchange for the member countries. Figure 1 illustrates the growth rate of the ECCU over the period 2004-2016. Prior to the crisis, the region experienced elevated levels of growth, specifically in 2005 and 2006, with growth rates in excess of 5.0 per cent. The region has since experienced its lowest Real GDP growth (2009) with a decline of 4.90 per cent. Subsequently, positive growth has been recorded, averaging 2.0 per cent over the 2012-2016 period. This outcome was primarily driven by improvements in the international macroeconomic environment which facilitated a rebound in the tourism sector.

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