Guyana stands out amid moderate growth in Caribbean: CDB
Jun 18, 2025
Kaieteur News – The Caribbean economy, excluding Guyana, expanded at a moderate pace, buoyed by steady global growth of 3.2%, led by the United States of America (US), the region’s main trading partner, the Caribbean Development Bank said in its economic outlook for 2025.
The Bank said regional real gross domestic product (GDP) grew by 1.7%, supported by the continued expansion of tourism services and increased commodity production.
However, the overall picture is nuanced, with economic performance varying across the Borrowing Member Countries (BMC), as they encountered a diverse array of opportunities and challenges. Several BMCs grappled with setbacks, most notably with the impact of Hurricane Beryl laying bare the region’s high vulnerability to natural hazards.
Four BMCs, including Haiti, remained below their pre-pandemic output levels, with Haiti’s ongoing instability continuing to hinder economic progress. In contrast, Guyana achieved extraordinary growth, expanding at a rate of 43.5%, fuelled by the continued expansion of oil production.
Looking ahead, CDB said regional growth will remain moderate. Excluding Guyana, the Caribbean economy is projected to expand by 2.5% in 2025, but prospects vary across countries, with some anticipating a more robust expansion than others. Tourism and construction activity are expected to remain key drivers of growth. The fiscal and debt position is expected to improve further and continue to support economic growth and stability.
However, some countries that are scaling up public investment or with scheduled general elections are expected to face heightened expenditure pressures. Many governments will continue to face constraints from limited fiscal space and risks to fiscal and debt sustainability; notwithstanding, fiscal responsibility frameworks in several countries should help maintain sustainable fiscal outcomes. The outlook is shadowed by the potential escalation of geopolitical tensions, a slowdown in major export markets, and possible disruptions to global trade flows resulting from the surge in protectionist policies, as well as the recurrent threat of natural hazards.
Related
Similar Articles
