SVG economy performing well

This country recorded a 6.48% economic growth in 2006, second only to Antigua and Barbuda in the OECS, and is expected to do even better for 2007.

This is according to figures released by the East Caribbean Currency Union at the sitting of the monetary council last week in St. Kitts.

Prime Minister Dr. Ralph Gonsalves who chaired the meeting, disclosed the numbers on Monday at a press conference.{{more}}

He revealed that Antigua and Barbuda had the highest growth in the union for that period, growing by 11.5 percent with St. Kitts and Nevis third highest in growth with 5.8%. They were followed by St. Lucia with 5.7%. Dominica had a 4.58% percent growth and Grenada a 2.14% growth, making an average growth rate of 6.1 %.

Dr. Gonsalves said that last this country’s has rebounded well from a disappointing 2.2 % growth rate that was recorded in 2005, which was stumped by the occurrence of Hurricane Ivan in late 2004.

He cited that tourism, construction and agriculture contributed to the economic success of 2006.

According to the Prime Minister, the monetary council expects the region’s economy to continue growing in 2007, especially with the hosting of the Cricket World Cup here.

This country’s growth rate is projected at 6.89% in 2007.

There was also growth in the commercial banking system, climbing from 6.9 percent in 2005 to 11.5% last year. The increased earnings associated with strong direct investment, vibrant construction activity relating to preparations for the Cricket World Cup as well as the associated buoyancy in economic activity were the main factors contributing to the spurt in deposit growth.

Credit conditions in the region also had a growth spurt which increased by 15.2 % to $8.4 billion. This was facilitated by a lowering of commercial bank lending rates, an easing of the terms and conditions for borrowing and the general buoyancy of the economy.

There was also a growth in net foreign assets and domestic prices, while liquidity in commercial banking fell marginally.