The currency union has provided a strong anchor for macroeconomic stability. In 2024, strong tourism performance and continued infrastructure investments have supported robust growth of 3.9 percent, and inflation moderated to below 2 percent in tune with global trends. This has facilitated a moderate reduction in the currency union’s fiscal and external imbalances, although public debt remains high at above 71 percent of GDP, and the post-pandemic trend of narrowing sizable current account deficits has stalled. The ECCB’s stable reserves underpin a strong currency backing ratio. The ECCU financial system has remained stable, though exhibiting legacy asset quality and credit condition weaknesses.

The union’s recent growth momentum is projected to wane. Increasing constraints to tourism capacity and completion of major infrastructure projects are set to slow real GDP growth to around 2½ percent over the medium term. Modest growth prospects reflect weak productivity and local investment, as well as headwinds from ageing populations, a shrinking labor force, and constrained fiscal space for public investment in most union members. Fiscal and external imbalances are projected to narrow over the medium term, reflecting in part the completion of import-intensive public investment projects.

Risks to the outlook remain mostly on the downside amid a highly uncertain external environment. As reported in the April World Economic Outlook, the escalation of trade tensions and high levels of policy uncertainty are a major negative shock to global economic activity. For ECCU economies, increased global trade and geopolitical tensions could give rise to disruptions to tourism and FDI inflows and renewed inflationary pressures. High public debt, persistent current account deficits, and weaknesses in the local financial system amplify vulnerability to recurrent ND shocks alongside the uncertain outlook for future citizenship-by-investment inflows.

Executive Board Assessment

The ECCU has achieved a strong rebound from successive adverse shocks. Strong tourism performance and continued infrastructure investments have supported robust post‑pandemic growth, while inflation has moderated in tune with global trends. This has facilitated a moderate reduction in the currency union’s fiscal and external imbalances, although public debt levels and current account deficits remain high in several members. The ECCU’s external position is assessed as weaker than implied by fundamentals and desirable policies, but the current account deficits remain fully financed, and the stability of the ECCB’s reserves underpins a strong currency backing ratio. The financial system has remained stable, albeit exhibiting continued asset quality and credit condition weaknesses. 

Growth momentum is nonetheless projected to wane, and risks to the outlook remain mostly on the downside. Increasing constraints to tourism capacity and the completion of major infrastructure projects are set to slow growth to around 2½ percent over the medium term. This modest growth potential reflects weak productivity and local investment, as well as headwinds from ageing populations, a shrinking labor force, and constrained fiscal space for public investment in most union members. Downside risks to the outlook are significant amid a highly uncertain external environment, where increased trade and geopolitical tensions could give rise to renewed inflationary pressures and disruptions to tourism and FDI inflows. High public debt, persistent current account deficits, and weaknesses in the local financial system amplify vulnerability to recurrent natural disaster (ND) shocks alongside the uncertain outlook for future Citizenship-by-Investment (CBI) inflows.

Achieving more robust, resilient, and inclusive long-term growth would support the currency union’s fiscal and external sustainability and raise living standards. To support this objective, common regional policies should be anchored in building economic, fiscal, and financial resilience and addressing supply bottlenecks that underpin the recent decades’ downward trend in the region’s growth potential.

A key policy priority is alleviating the region’s structural growth impediments, which calls for a coordinated, multipronged approach. Addressing frictions to employment and skills development requires a renewed effort to attune human capital to economic needs and development priorities through vocational training and modernized education systems, complemented by active labor market policies and improved access to child and elderly care. Common policies can also enhance the scale, resilience, and efficiency of the region’s capital stock by helping to accelerate energy transition to local renewables, optimize the CBI funding model, and increase ND preparedness. Substantial productivity gains may also be achieved through cooperative efforts to address bottlenecks to innovation and allocative efficiency, including by digitalizing key services, streamlining licensing and administrative processes, and strengthening financial intermediation.

Fiscal policies should remain closely focused on rebuilding buffers, reducing public debt consistent with the regional debt anchor, and improving resilience to shocks. Region‑wide adoption of strong medium-term fiscal frameworks (MTFFs) embedded with well-designed fiscal rules and credible policy plans would support sustainability objectives and create policy space for growth-enhancing social and resilience investment. Comprehensive fiscal resilience strategies, including adequate disaster-financing frameworks, can help alleviate periodic ND disruptions to debt sustainability and support the region’s growth resilience. Strengthening the fiscal management of uncertain CBI revenues can similarly alleviate risks and facilitate fiscal planning. These efforts can be supported by more institutionalized regional oversight and continued strengthening of national fiscal institutions.

Enhancing financial system resilience and reducing persistent credit frictions can support a more conducive environment for growth-supporting local investment. Regional policy priorities include reducing vulnerabilities from legacy bank balance sheet weaknesses, mitigating risks from rapid credit union expansion, building readiness to manage risks from high dependency on global reinsurance, and strengthening national AML/CFT frameworks. Common minimum NBFI regulatory standards under the planned Eastern Caribbean Financial Stability Board (ECFSB) will be an important step toward their more unified oversight, although a more centralized supervisory structure would better facilitate management of regional stability risks. Coordinated efforts to reduce institutional frictions in local credit markets and support small ECCU businesses’ bankability can help address structural challenges in financial intermediation, revive local credit and investment, and foster the development of a more vibrant private sector.

Strengthening economic data could significantly improve regional policy design and risk management. Priorities include addressing shortcomings in coverage, quality, and timeliness of key national and external accounts and reducing significant blind spots in areas such as the regional labor markets and CBI flows. Greater leveraging of synergies in regional data compilation and processing could help address persistent resource and capacity gaps.

Sources: Country authorities and IMF staff estimates and projections.1/ Includes all eight ECCU members unless otherwise noted. ECCU consumer price aggregates are calculated as weighted averages of individual country data. Other ECCU aggregates are calculated by adding individual country data. The staff report projections are based on the information available as of March 31, 2025. It, therefore, does not reflect the impact of the escalation of trade tensions on and after April 2, 2025.2/ Projections include expected fiscal costs of natural disasters.3/ Excludes Anguilla and Montserrat.

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The EBRD and Amonatbank have signed an MoU to begin joint work that will enable Tajik financial institutions to provide local currency loans to Tajik MSMEs and individual entrepreneurs. The MoU was signed by Ikromi Sirojiddin Salom, Chairman of Amonatbank, and Francis Malige, EBRD Managing Director of Financial Institutions. Amonatbank, established in 1885, is the oldest lender in Tajikistan and currently serves almost 2.5 million customers, including 2.3 million depositors through 4 regional and 71 municipal branches and around 550 business service outlets across Tajikistan. The EBRD has invested more than EUR900 million through almost 160 projects in Tajikistan since the country joined the Bank in 1993.

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• To Promote Equitable Healthcare in India
• To Create a State-of-the-Art Institute dedicated to advancing healthcare initiatives
• To strengthen health systems across multiple districts in India through the “District Full Stack Programme.”

INDIA: CryptoRelief, a global movement started by Sandeep Nailwal that saw a rare convergence of volunteers, NGOs, and technology during the challenging times of the Covid-19 pandemic, announces today it’s rebranding as “Blockchain For Impact” (BFI). BFI is an initiative with a resolute mission to drive transformative change in India’s healthcare landscape. BFI is set to continue the noble legacy of CryptoRelief, forging multi-sectoral collaborations that focus on research, development, innovation, and implementation to meet the fundamental needs of our nation’s health system.

The BFI announcement will coincide with the celebration of two years of CryptoRelief’s transformative philanthropic journey. The event, a reflection of the Bengaluru-based organization’s remarkable journey over the past two years and its visionary path ahead will be graced by the presence of two of the most respected figures in the cryptocurrency blockchain space – Mr. Vitalik Buterin and Mr. Sandeep Nailwal.

The evening will include a Fire-side chat with the esteemed donor and guest of honor, Vitalik Buterin, the visionary founder of Ethereum Blockchain who will be sharing valuable insights into BFI’s vision and the plans to promote equitable healthcare in India.

Mr. Nailwal, a distinguished figure from India in the same space, will host the event, reflecting his instrumental role in shaping BFI’s momentous journey.

The event will showcase the seamless collaboration of technology, social media, NGOs, and volunteers as distinguished heads of leading NGOs will participate, highlighting the collaborative approach to driving impactful change.

Representatives from esteemed institutions like IISc, IIT, NCBS, CCAMP, and BIRAC, along with leading scientists across India, will be part of the event, showcasing BFI’s commitment to fostering research and innovation.

BFI is scheduled to announce its visionary goal of funding healthcare projects in India, amounting to $200 million under the brand name “Blockchain For Impact,” reinforcing its dedication to transformative philanthropy.

The three focus areas for BFI for the future will be on:

Biomedical Research & Innovation– To foster advancements inequitable healthcare, we are empowering medical and research communities, cultivating dynamic partnerships in biomedical science, and harnessing innovation to facilitate tangible improvements.

District Full-Stack Program– To cater to the notable absence or inadequacy of a comprehensive, multi-faceted healthcare delivery that stems from the grassroots, we are harnessing the “District as a unit of change” concept to deliver re-oriented, re-organized, and people-centric healthcare solutions on the ground.

Innovation & Research– The pandemic exposed India’s dire need of increasing its capacity to strengthen the country’s healthcare infrastructure. A conclusion seemed obvious about the apparent need for a platform for scholars and young professionals to get involved from basic to intricate Research & Development assignments. We at Blockchain For Impact are aiming to bridge these unaddressed loopholes and create a health ecosystem that stems from digital transformation, evolving business models, and healthcare delivery innovation.

The event, in fact, serves as a testament to the organization’s unwavering dedication to catalytic philanthropy and its commitment to leveraging blockchain technology to create lasting, positive change in India’s public health and research sectors.

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e₹ is a digital token that is equivalent to a banknote i.e., legal tender, and is a sovereign currency backed by the RBI. Being digital, e₹ removes all the issues of handling physical cash and offers the same anonymity as a banknote. Moreover, since all e₹ transactions are done through an RBI-regulated entity, it reduces banknote-related risks such as Anti-Money Laundering, Counterfeit Currency, etc. Reliance General Insurance is enabling its customers to hedge such risks by providing e₹ as a form of digital currency transaction option thereby promoting safe financial transactions.

Elated about the launch, Mr. Rakesh Jain, CEO, of Reliance General Insurance, said, “This is an excellent achievement for us, and we are delighted to associate with YES BANK and introduce and promote e₹ payment mode in the GI industry. Being a customer-first General Insurance company, we have always drawn inspiration from the customers and developed innovative solutions and services keeping their needs, safety, and convenience at the center of our business. With this launch, we wanted to provide our customers with greater ease, higher safety, and more green payment option. Furthermore, this launch is also in line with our commitment towards fulfilling the Government of India’s vision of Digital India.”

Speaking on the occasion, Mr. Arun Agrawal, Country Head – Institutional & Government Banking, YES BANK, said, “YES BANK is pleased to partner with Reliance General Insurance in promoting Central Bank Digital Currency (CBDC), an industry first in the Insurance sector. With higher familiarization and wider adoption, we expect CBDC transactions to complement existing digital payment systems considering features such as authenticity, interoperability, and settlement finality.”

Currently, Reliance General Insurance’s physical e₹ QR code is available at their select branches for walk-in customers to scan and pay instantly. The Company plans to make it available at all branches across the country, on its website, and on the Reliance Self-i app in the next few months.

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