(MENAFN - Caribbean News Global)
USA/St Kitts and Nevis - The COVID-19 pandemic has hit the Eastern Caribbean Currency Union (ECCU) economy hard, and until it is brought under control, tourism activity will remain subdued and will, in turn, limit the strength of economic recovery.
The near-term policy imperative is to protect lives and livelihoods and limit potential scarring, while ensuring medium-term debt sustainability with strengthened fiscal frameworks and maintaining financial system stability, with a view to safeguarding the quasi-currency board system. Once the post-pandemic recovery takes hold, policies should focus on resuming fiscal consolidation, further strengthening the financial system, and accelerating other structural reforms to make the economy more competitive and resilient.