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Eastern Caribbean countries enjoy rich natural endowments and have achieved significant economic development. Throughout the last decades, they have also been confronted with a number of rising economic, social and environmental challenges.
Grenada Investment and Business Guide - Strategic and Practical Information
The need to promote increased trade, prevent the spread of HIV/AIDS, and ensure adequate water resources are some of the development challenges generating interest in increased regional and sub-regional cooperation. This evaluation seeks to provide guidance on when it is desirable for the Bank to support activities on a regional level, and assesses the effectiveness of both regional programs and the Banks role in supporting them. It comes at a time of increasing interest in regional development programs, supported by recent theoretical work on regional public goods and regional trading arrangements, and calls from groups in the international development community for the Bank to provide more support for multi-country programs (both global and regional).
This 2001 Article IV Consultation highlights that in recent years, economy of St. Vincent and the Grenadines has diversified from bananas into services, mainly tourism, telephone and Internet-based marketing, and offshore financial services. However, the rate of economic growth declined sharply to 2 percent in 2000. The external current account deficit is estimated to have doubled to about 161⁄2 percent of GDP in 2001 largely owing to a decline in banana export volumes, higher imports, and a slowdown in tourism receipts and remittances.