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Eastern Caribbean stability faces a narrowing margin for error

The Eastern Caribbean Currency Union’s role as a pillar of regional stability is being tested as high public debt and uneven fiscal discipline narrow governments’ ability to respond to shocks, the International Monetary Fund (IMF) said. The pressure is not the result of a new crisis, but of a familiar imbalance. Economic growth has returned since the pandemic; fiscal space has not. Tourism and construction have lifted output, inflation has eased, and external buffers remain solid. [...]