IMF says financial crisis in the US will impact tourism in the Caribbean

Published: Friday October 24, 2008

The International Monetary Fund (IMF) has indicated that the financial crisis in the United States and elsewhere should be expected to impact the tourism sector in the Caribbean and overall.

Given the importance of the tourism sector to the economies of most Caribbean islands, IMF Division Chiefs for the Caribbean stressed the need to develop effective policy responses.

The Antigua Sun reported that Antigua's finance minister, Dr Errol Cort was on hand at the series of IMF/World Bank meetings held in Washington DC to participate in the bilateral and multilateral discussions concerning issues of importance to Antigua and Barbuda.

Among the topics discussed were the ongoing international financial crisis, debt strategy and economic infrastructural development.

When the financial crisis was discussed, it was stressed that although the Eastern Caribbean Currency Union (ECCU) did not appear to have significant exposure to the institutions at the heart of the crisis, some indirect effects may show up in the "real sector".

In the light of this, according to the Antigua Sun report, the IMF indicated its readiness to work with countries of the region to provide "policy, technical and financial support to minimise any negative impact".

It was emphasised that the impact felt by countries in the Caribbean would differ based on a number of factors including the level of economic growth and productivity.

With regard to reducing debt in the Caribbean, representatives of the region focused on the need for the IMF and the World Bank to work with the region in order to develop more innovative approaches to dealing with the issues of debt.


Source: Jamaica Observer
http://www.jamaicaobserver.com/magazines/Business/html/20081023T210000-0500_141665_OBS_IMF_SAYS_FINANCIAL_CRISIS_IN_THE_US_WILL_IMPACT_TOURISM_IN_THE_CARIBBEAN.asp