News Americas, Washington, D.C., Weds. June 12, 2024: Ten Caribbean nations are forecasted to show positive growth this year, according to the World Bank’s latest Global Economic Prospects report. The overall growth for the Caribbean is expected to strengthen to 7.1 percent in 2024, with a continued robust performance in 2025 at 5.7 percent. Excluding Guyana, the growth rate is forecasted at 3.9 percent in 2024 and 4 percent in 2025. Analysts attribute this growth to a moderate recovery in tourism and remittances.
Caribbean Countries Set To Show Positive Growth in 2024
| Country | 2024 Growth (%) |
|---|---|
| Guyana | 34.3 |
| Dominican Republic | 5.1 |
| Saint Vincent and the Grenadines | 5 |
| Dominica | 4 |
| Barbados | 3.7 |
| Belize | 3.4 |
| Suriname | 3 |
| St. Lucia | 2.9 |
| The Bahamas | 2.3 |
| Jamaica | 2 |
Global Outlook
The global economy is expected to stabilize for the first time in three years in 2024, although at a weaker level compared to recent historical standards. Global growth is projected to hold steady at 2.6% in 2024 before slightly increasing to an average of 2.7% in 2025-26. This is below the 3.1% average seen in the decade before COVID-19. The forecast suggests that from 2024-26, countries representing more than 80% of the world’s population and GDP will grow more slowly than in the pre-COVID-19 decade.
“Four years after the upheavals caused by the pandemic, conflicts, inflation, and monetary tightening, it appears that global economic growth is steadying,” said Indermit Gill, the World Bank Group’s Chief Economist and Senior Vice President. “However, growth is at lower levels than before 2020. Prospects for the world’s poorest economies are even more worrisome. They face high levels of debt service, constricting trade possibilities, and costly climate events. Developing economies will need to encourage private investment, reduce public debt, and improve education, health, and basic infrastructure. The poorest among them, especially the 75 countries eligible for concessional assistance from the International Development Association, will need international support to achieve this.”
“Although food and energy prices have moderated globally, core inflation remains relatively high and could stay that way,” said Ayhan Kose, the World Bank’s Deputy Chief Economist and Director of the Prospects Group. “This could lead central banks in major advanced economies to delay interest-rate cuts. An environment of ‘higher-for-longer’ rates would mean tighter global financial conditions and much weaker growth in developing economies.”
