Hurricane Irene
A catastrophe modeling firm estimates that Caribbean nations lost between $500 million and $1.1 billion in damages from Hurricane Irene, company officials said.
According to the estimate released last week from AIR Worldwide, more than 60 percent of the insured loss occurred in the Bahamas, where the hurricane damaged residences, commercial and industrial properties at a cost between $300 and $700 million. The estimates include physical damage to property and business interruption losses, but do not include losses to uninsured properties or infrastructure, according to a company press release.
St. Vincent and the Grenadines
Economic activity in St. Vincent and the Grenadines is expected to remain “subdued” this year due to natural disasters and the world economy, according to the International Monetary Fund. An IMF team visited the country in August to discuss the country’s macroeconomic policies. According to a statement from the organisation, the country’s GDP shrank by 1.8 percent last year. “Growth is expected to recover in 2012 and reach its potential level of 3.5 percent over the medium-term, provided recovery in advanced economies does not stall,” the team said in the statement.
Economic conditions have put pressure on government finances, leading to budget deficits financed by foreign lending. Resolving this situation will require the St. Vincent and the Grenadines government to undergo “structural reforms aimed at improving the business climate and making the country more competitive,” the IMF team stated.