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Christine Lagarde, Managing Director of the International Monetary Fund (IMF), has said the youth unemployment rate in the Caribbean is among the highest in the world.
Speaking at the IMF's sixth annual Caribbean Forum underway at the Jamaica Pegasus in Kingston, Ms Lagarde said strong growth could reduce youth unemployment in the region.
She noted that economic growth has been low in the Caribbean for several decades.
Ms Lagarde said this has led to other social and economic challenges including poverty, inequality and brain drain.
The IMF managing director added that crime, which is partly fuelled by the high rate of joblessness, is a major obstacle to growth in the Caribbean.
"We need to create a virtuous as opposed to a vicious circle, where strong growth will reduce high unemployment and, particularly, youth unemployment and crime, which in turn will contribute to boosting productivity and growth and improve this business friendly environment, without which investors are unwilling to invest," said Lagarde.
The Caribbean Forum is being held under the theme "Unleashing Growth and Strengthening Resilience."
Ms. Lagarde said the forum will tackle the issues in a comprehensive way.
Jamaica
Meanwhile, Prime Minister Andrew Holness, who addressed the forum, said Jamaica's youth unemployment rate has been declining.
"Youth unemployment declined by 2.1 percentage points to 27.5 per cent, so we are making progress and significant progress in reducing our debt, increasing our economic stability, but taking on a posture for growth," he purported.
Finance Minister Audley Shaw, in the meantime, said part of the Government's discussions with IMF representatives at Thursday's forum will be the need for a more formal economy where persons for example, borrow money for commercial banks, rather than from informal lenders at higher rates. He argued that the burden to repay high interest rates is hindering productive activity.
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