In the latest Global Economic Prospects Report, the World Bank anticipates a steady recovery in the Caribbean and Latin America, projecting an overall economic growth of 2.3% and 2.5% for the region this year and the next. Despite a dimmed outlook for developing economies due to slowing growth and trade challenges, Barbados stands out with an optimistic forecast of 4.6% growth in 2024.
The report acknowledges the persistent challenges faced by the Caribbean and Latin America region, emphasizing the impact of previous monetary tightening on near-term growth. However, it anticipates a gradual improvement as inflation slows, leading central banks to reduce interest rates and stimulate investment growth.
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The economic analysis further reveals that the global Gross Domestic Product (GDP) is experiencing its slowest growth in 30 years. In 2023, Latin America and the Caribbean faced a significant economic slowdown, growing by just 2.2%, attributed to factors like heightened inflation, tight monetary conditions, weak global trade, and adverse weather events.
Noteworthy GDP growth figures for 2023 include Barbados at 4.6%, Dominica at 4.9%, and St Vincent and the Grenadines at 6.0%. Looking ahead, Barbados is predicted to sustain a growth rate of 4.0% in 2024. In contrast, Saint Lucia, which experienced a remarkable 15.9% growth in 2022, is estimated to grow by 3.2% in 2023, 2.9% in 2024, and 2.3% in 2025.
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Caribbean economies, excluding Guyana, are expected to grow by 4.1% in 2024 and 3.9% in 2025, driven in part by the ongoing expansion of the tourism sector. Central America foresees steady growth rates of 3.7% in 2024 and 3.8% in 2025, supported by a moderate increase in remittances, especially in 2024.
Despite the positive outlook, the report identifies risks for the region, including escalating geopolitical tensions in the Middle East, potential disruptions in energy markets, and rising oil prices. Additionally, extreme weather events intensified by climate change pose threats to climate-sensitive sectors such as agriculture, energy, and fishing.
Source: Barbados Today
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