By Javaughn Keyes
The Caribbean region is expected to grow at a slower pace than initially projected this year.
The World Bank's Global Economic Prospects report found that growth is expected to reach 7.1 per cent in 2024. This is 0.5 per cent lower than initial forecasts.
The Caribbean's growth is being led by Guyana. Excluding that territory's projection, the Caribbean's economic growth for 2024 is forecast at 3.9 per cent, to reach four per cent in 2025. Including Guyana, growth projection for 2024 is set at 5.7 per cent.
Growth in the wider Latin America and the Caribbean is set to increase by 1.8 per cent, a 0.5% drop in the outlook, compared to the forecast in January.
In 2025, output is expected to increase by 2.7 per cent, which is 0.2% higher then the January report. This is driven by the expected normalization of interest rates and decreases in inflation.
The World Bank says the forecast is subject to several risks, predominantly on the downside.
These include potentially tighter global financial conditions, elevated local debt levels, and a slowdown in China's growth, affecting Latin American and Caribbean exports.
Climate change-related extreme weather events also present a risk.
Conversely, stronger economic activity in the United States could positively impact Central America and the Caribbean.
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