Description

The OECS economy has maintained an average annual economic growth of approximately 5% in the period 1980 - 1988. This rate far exceeds the performance of most developing countries including the more developed CARICOM countries such as Barbados, Guyana, Jamaica, Trinidad and Tobago. There are two key reasons for this impressive performance. Firstly, there has been a significant shift in concentration of the factors of production from lower productivity or comparative disadvantageous activities, mainly in agriculture, to higher productivity activities such as: tourism, manufacturing, construction and transportation services. Secondly, gross investment as a percentage of GDP was very high (32% to 35%) with the private sector being the engine of growth. The private sector accounted for over 70% of domestic investment with most of the other 30% by the public sector concentrated in economic support projects such as factory buildings, roads and electricity. The private sector investment concentrated in low local value added, labor intensive manufacturing, small hospitality facilities and production support services.

The O.E.C,S economy has maintained an average annual economic growth of approximately 5% in the period 1980 - 1988. This rate far exceeds the performance of most developing countries including the more developed CARICOM countries such as Barbados, Guyana, Jamaica, Trinidad and Tobago. There are two key reasons for this impressive performance. Firstly, there has been a significant shift in concentration of the factors of production from lower productivity or comparative disadvantageous activities, mainly in agriculture, to higher productivity activities such as: tourism, manufacturing, construction and transportation services. Secondly, gross investment as a percentage of GDP was very high (32% to 35%) with the private sector being the engine of growth. The private sector accounted for over 70% of domestic investment with most of the other 30% by the public sector concentrated in economic support projects such as factory buildings, roads and electricity. The private sector investment concentrated in low local value added, labor intensive manufacturing, small hospitality facilities and production support services.