A team from the International Monetary Fund, which ended an Article IV consultation with the Caricom nation last week, has commended the country's economy for exhibiting resilience and registering a fifth consecutive year of robust growth "despite external and domestic shocks in 2010."
"Notwithstanding downside risks, including the global environment and concerns in the sugar sector, the team expects growth to continue on a steady path, supported by expansion in the mining and construction sectors. Despite a small increase reflecting movement in food prices inflation remains relatively low," according to the IMF. The IMF said that it welcomed the continued improvements in public financial management and tax administration, especially with respect to compliance and risk management. It also welcomed the increase in the gross foreign reserves position, to about five months of imports at present. "While the banking system remains liquid and well capitalized, continued vigilance is warranted, particularly against the backdrop of the ongoing housing boom. Recent enhancements in financial sector supervision and regulation, including new guidelines on risk management, are welcome."