By contrast, in the 2018 Budget, projections were for a deficit of only 3.6% of GDP for both fiscal years. Page - 3 - of 9  Inflation  In a constrained economic environment, it is not unexpected that some voices argue that monetary policy could do more to support economic growth.
The following examples are worth noting: (i)  First, the traditional preferences for bananas and sugar are now practically at an end and the region still finds itself unable to compete with lower-cost producers;  (ii)  Second, foreign aid flows to the region (with the exception of Haiti) have all be dried up;  (iii)  Third, while Caribbean tourism continues to be a viable brand, the region is facing stiffer competition from Asian destinations and will experience even greater competitive pressure when Cuba is fully opened up (as it could in the not too distant future); and  (iv)  Fourth, the prospect of continued high unemployment in the US and the UK for the next 2 – 3 years will have implications for workers’ remittances which are very important to some Caribbean economies.