NEW YORK, N.Y., Fri. Dec. 24: The economic outlook for the Caribbean region as a whole continues to improve, with recovery from the fallout and aftermath of the 9/11 terrorist attacks almost region-wide and in spite of the devastating impact of hurricanes and tropical storms during the past months. That’s the word from both the Caribbean Development Bank and the United Nations Economic Commission for Latin American & the Caribbean, two major multilateral agencies monitoring their performance. The tourism sector was an important contributor to the improved economic performance with increases in both overnight visitor arrivals and cruise passengers in general, according to the CDB. Perceptions of the region as a safe destination, coupled with increased marketing and an appreciating Euro against the U.S. dollar are cited as major reasons for the Caribbean as an attractive destination. While increases were also recorded in construction and international business (financial services), the CDB cautioned that the manufacturing sector continued to struggle with most countries registering declines in output. Cited by the CDB as principal reasons were increased trade liberalization and strong competition continuing to plague the region’s manufacturers. Dominating the competition is Asia in general and mainland China in particular. The exception to this was Trinidad & Tobago (T&T), rich in both oil and natural gas, where output increased in the production of chemicals, non-metallic goods and assembly-type operations. In its overview, ECLAC noted a 4.5 percent growth which had been corrected upward mid year and indicated that the continued recovery benefited almost every country in the region. Officials of the agency also observed that domestic economic policies are reflecting signs of more fiscal and monetary control, along with more competitive exchange rates that have made it possible to take advantage of favorable external conditions. How long this new growth phase will last depends of future trends in both domestic and external factors, ECLAC cautions, noting that domestically, the weak demand apparent in many of the region’s economies raise doubts about the likelihood of the recovery consolidating. In the external context it observes some social imbalances must be faced sooner or later and, while they don’t post immediate risks, suggest that the world economy will grow more slowly in the medium term. Reprinted from hardbeatnews.com