WASHINGTON, CMC – Caribbean economies have demonstrated notable resilience amid global economic headwinds, according to a new report from the Inter-American Development Bank Group (IDB Group).
It said strong performance in tourism and energy has anchored regional growth, although significant downside risks persist.
The IDB Group said the latest edition of the Caribbean Economics Quarterly, “How Are External Forces Impacting Trade, Growth and Investment on the Caribbean?”, offers a comprehensive analysis of the region’s economic outlook.
The study examines global trends and their implications on the economies of The Bahamas, Barbados, Guyana, Jamaica, Suriname, and Trinidad and Tobago.
Potential labour-market weakness in North America, cautious investor sentiment, and evolving global supply-chain patterns are among the key risks that could dampen growth prospects.
“The Caribbean has navigated a complex global landscape with commendable stability, but we must remain vigilant,” said Anton Edmunds, IDB general manager for the Caribbean.
“This report provides a clear-eyed view of the challenges ahead, while also highlighting significant opportunities for growth. Investments in tourism, reliable energy, and technology-focused foreign investment can build greater resilience and secure a more prosperous future for the region.”
The report notes that the downward trend in global commodity prices has eased current account pressures for oil-importing countries. At the same time, Guyana’s expanding oil sector continues to drive robust growth, with promising prospects for Suriname’s oil sector in the coming years. Tourism-dependent economies such as The Bahamas and Barbados demonstrated strong performance in the first half of 2025, supported by buoyant travel demand.
The recent impact of Hurricane Melissa on Jamaica underscores the severe disruptions that natural disasters can inflict on critical sectors, including agriculture, mining, and tourism, with broader implications for the entire region’s economy.
Despite the challenges, the report identifies significant opportunities for the Caribbean. Diversification within tourism and services, renewed interest in energy resilience, and technology-focused foreign direct investment are expanding globally.
The Caribbean’s increasing geographic diversification in trade also offers some insulation from global tensions.
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