By Caribbean Business Report
The Caribbean Development Bank (CDB) projects regional economic growth of 2.5% in 2025, excluding Guyana, with overall growth reaching 4.6% when Guyana’s oil-driven expansion is factored in. Despite a steady outlook, CDB’s Director of Economics, Mr. Ian Durant cautioned that challenges such as geopolitical tensions, climate risks, and the inability to execute critical infrastructure projects in a timely manner could impact economic performance.
Regional GDP growth, excluding Guyana, slowed to 1.7% in 2024 from 2.5% in 2023, as post-pandemic recovery momentum eased. Fifteen of CDB’s Borrowing Member Countries (BMCs) surpassed pre-pandemic output levels. Service-exporting economies experienced a slowdown, with growth at 1.6% compared to 2.8% in 2023.
Tourism arrivals remained strong, exceeding pre pandemic levels in several BMCs, while construction was another key economic driver, bolstered by infrastructure investments and private-sector developments. While inflation moderated, and unemployment declined in most countries, Hurricane Beryl’s devastation across multiple BMCs underscored the region’s vulnerability to climate shocks. Fiscal positions strengthened, with most BMCs achieving primary surpluses, though public sector wages and infrastructure spending increased.
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While debt levels increased in nominal terms, the regional debt-to-GDP ratio declined to 50.9% from 55.6% in 2023, and five BMCs – Anguilla, Barbados, Belize, Jamaica, and Suriname – received sovereign credit rating upgrades. Economic expansion in 2025 is expected to be driven by continued strength in tourism and construction.
CDB Forecasts Moderate Economic Growth in 2025 added by Caribbean American Weekly on
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