The Caribbean is experiencing the longest growth period in four decades - IMF

In its latest World Economic Outlook report, the bank predicts that growth in the Caribbean next year would be its lowest in four years.

The IMF warns of further risks to the economic outlook from high oil prices and the deficit in United States international trade.

It cut its earlier prediction of global economic growth next year from 5.2 percent to 4.8 percent.

But the IMF said developing countries in Asia and Latin America and the Caribbean seemed less vulnerable to problems in international markets than they once were.

It credits improved policies and high levels of reserves of foreign currency.

The IMF says it expects Caribbean economies to grow collectively by 4.4 percent next year.

That is down from the six percent projected for this year, the 8.4 percent recorded in 2006 and 6.5 percent in 2005.

The Fund said Latin American and Caribbean countries were experiencing the longest period of uninterrupted economic growth since the 1960s.

But it added that governments must do more to make the most of the helpful global environment.

The slowdown forecast for next year, as far as the Caribbean is concerned, can also be attributed to an anticipated slower growth of remittances from migrant workers, and the end of a hotel construction boom in the Caribbean.

Some of this building activity was linked to the cricket world cup this year.

Many migrants found work in the US during the real estate boom years, but such job opportunities have dwindled since early 2006.

The financial problems in world markets of the last few months originated in the American housing market.