The Eastern Caribbean Central Bank's Monetary Council has warned that rising geopolitical tensions, volatile oil prices and global trade uncertainty pose significant risks to the Eastern Caribbean economy and could dampen tourism demand in the months ahead.
According to Antigua News Room, the warning was contained in a communiqué issued following the Council's 113th meeting, held in Dominica on Friday, where regional finance ministers gathered to review the economic outlook for the Eastern Caribbean Currency Union (ECCU).
"The Council observed that global uncertainty continues to weigh on the economic outlook," the communiqué stated, citing volatility in oil prices, trade uncertainties and geopolitical conflicts as significant risks to regional growth.
The Council described the region's growth outlook as "tilted to the downside," warning that deteriorating external conditions could weaken tourism demand and slow economic expansion across member states.
Despite those concerns, the Monetary Council expressed support for continued investment in strategic development projects and renewable energy initiatives, describing them as critical to strengthening the region's resilience and supporting sustainable development. The Council also stressed that energy resilience remains central to accelerating economic growth and called for the expedited operationalisation of the Caribbean Resilient Renewable Energy Infrastructure Investment Facility.
The Council further agreed that Eastern Caribbean nations must accelerate the pace and scale of collective regional action under the ECCB's "Big Push" strategy, aimed at improving long-term competitiveness and resilience.
While cautioning against external risks, the Council acknowledged that the tourism sector has continued to perform strongly. Visitor arrivals across the ECCU rose 9 percent to 2.5 million in the first quarter of 2026, while visitor spending increased 4 percent to EC$2.8 billion over the same period — reflecting sustained demand for the region as a travel destination.
