Business
Caribbean Economies Face Climate Change and De-Globalisation Threats, Warns Central Bank Governor
Central Bank governor Dr Kevin Greenidge warns of climate change and de-globalisation as major threats to Caribbean economies. Rising sea levels and protectionist policies impact infrastructure, tourism, and trade.
5 min read
Originally published by barbadostoday.bb (opens in new tab)
Central Bank governor Dr Kevin Greenidge has issued a stark warning about the challenges facing Caribbean economies, highlighting climate change and de-globalisation as major threats to the region’s future prosperity.
Speaking at the opening of the bank’s 44th Annual Review Seminar, Dr Greenidge painted a sobering picture of the economic landscape confronting Barbados and its neighbours.
The governor did not mince words about the threat of climate change.
“We in Barbados and our regional neighbours are vulnerable to climate change because of the geographic and economic characteristics we have,” Dr Greenidge told attendees at the Radisson Aquatica Hotel. “Rising sea levels, increasing temperatures, and more frequent and severe hurricanes threaten our infrastructure, our tourism products, and our culture. It threatens our food security, our lives, and our livelihoods.”
Citing recent natural disasters, Dr Greenidge highlighted their devastating economic impact: “Our neighbours in Grenada, St Vincent and the Grenadines, and Jamaica have experienced firsthand the impact that Hurricane Beryl had on them. The damage is almost north of half a billion dollars so far. These sorts of devastations push up our indebtedness as countries, constrain our fiscal space, and restrict how we can move forward.”
The central bank governor also focused on the rising tide of de-globalisation.
“De-globalisation, which is characterised by the threat of the retreat of international trade and the rise of protectionist policies, has a profound effect on Barbados and the Caribbean,” he said.
“Our regional economies heavily rely on international trade, tourism, and foreign investment.”
He warned that policy shifts by major trading partners like the United States and the European Union are already draining the region’s export revenues.
“We see it impacting our financial sector and our international business sector,” Dr Greenidge said. “The decline in global tourism due to political tensions can further strain our economies, especially those dependent on tourism.”
The governor further noted: “[Barbados], like most countries in the Caribbean, are highly import-dependent economies, particularly as it relates to goods, food, and services. This de-globalisation threatens to push up our costs, further reduce our availability of essential products, and impact both our consumers and businesses.”
Addressing strategic competition, he pointed out the difficulties small island nations face in competing with larger, more diversified economies.
