BRIDGETOWN, Barbados (CMC):
THE CARIBBEAN recorded a decline in economic activity for 2005, but the Barbados-based Caribbean Development Bank (CDB) said yesterday it was anticipating improved performances from the region this year.
"This slowing was due to a weaker performance in the tourism sector, significant constraints and spillovers from the 2004 hurricane season, which was very active," said the CDB's Chief Country Economist, Kelvin Dalrymple.
He added that there was also a "slower, if somewhat shallow, global growth and there was, of course, the rising oil prices which impacted on these economies."
ACTIVE CONSTRUCTION SECTORS
Dalrymple told a news conference that the slow performances in some countries were countered by active construction sectors, growth in the offshore financial sector, as well as some vibrant activity in the mining industries.
In a review of the region's economy for 2005, Dalrymple said the fiscal deficits of some countries continued to grow "and this reflected high expenditure which outpaced revenue."
Current account deficits also grew, and in many cases this was as a result of sectors, including the tourist industry, which were not growing at a pace.
As a result of this, foreign exchange earnings also slowed in many CDB member-countries.
DECLINE IN CRUISE ARRIVALS
The bank said there was moderate growth in the tourist sector, but a sharp decline in cruise arrivals was influenced by the repositioning of cruise ships and changes in cruise routes in response to market shifts and sharp increases in fuel prices.
Damage to hotel accommodation in Grenada and in the Cayman Islands, caused by Hurricane Ivan in 2004, was responsible for the sharp declines in the number of long-stay visitors to those countries during the year, although reconstruction and rehabilitation work continued, the CDB said.
Only the Cayman Islands, Grenada and Jamaica recorded increases in cruise passenger arrivals, according to the CDB annual economic report.
