By: Staff Writer
March 6, 2026
The Caribbean Development Bank’s (CDB) director of economics said at the bank’s annual media event held this past Tuesday that inflation in the region fell to 3.4 percent in 2025 from a high of 9.7 percent in 2022.
Jason Cotton, acting deputy director of the Economics Department for the CDB, said: “Among commodity exporters, economic activity in Suriname accelerated, partly reflecting continued oil related investment, while Trinidad and Tobago experienced muted growth.
“Service exporting economies expanded more slowly as tourism momentum eased once again, climate shocks weighed heavily on performance. Hurricane Melissa struck Jamaica while it was still recovering from Hurricane Beryl, pushing the economy into a second consecutive year of contraction.
“There was, however, some relief on inflation. In line with global trends, price pressures eased across most economies, with regional inflation falling to an average of 3.4 percent from its 2022 peak of 9.7 percent.
“Labor market conditions also improved in several countries with lower unemployment and higher participation, though disparities remain, especially among youth and women.
“On the fiscal side, consolidation gains achieved in the post pandemic period stalled in a number of borrowing member countries, excluding Guyana, the regional primary surplus narrowed to 1.3 percent of GDP as expenditure growth outpaced revenue, higher recurrent expenditure, climate related shocks, temporary tax relief measures and volatile non tax inflows all contributed to the weakening in Guyana.”
Cotton said that at the same time, stronger-than-expected tourism outturns accelerated investment, progress on the renewable energy transition, and accelerated reforms to the business environment could improve medium-term prospects.”
The CDB official said that in the Caribbean’s recent history, one external shock has followed another, each one underscoring how exposed small open economies remain. He said this year, beyond the shocks themselves, uncertainty has become more deeply entrenched.
“This reality makes regional cooperation not just desirable, but absolutely essential. In a more uncertain and fragmented world, vulnerability is magnified when countries act alone, but together, we are more resilient.
“It is equally important to emphasise that we are not without agency,” Cotton said noting that external conditions matter, but they do not fully determine outcomes.
“The policy choices we make, the institutions we build, and the societies we shape will continue to influence the region’s path,” he said, adding this points to several clear development imperatives.
“First, we must improve implementation. Good plans and secured financing mean little without delivery. Implementation must match ambition. Second, we must diversify. Over-reliance on single industries leaves us exposed. More competitive, private-sector-led economies are essential to lasting resilience.
“Third, we must build resilience by design, invest upfront in stronger infrastructure, strengthen disaster risk financing, and ensure our social systems can respond when shocks strike. Fourth, we must strengthen fiscal institutions and safeguard debt sustainability.”
Cotton said wider adoption of well-designed fiscal responsibility frameworks will further strengthen policy credibility and that resilience is about people.
“Equip them with skills, expand decent work and unlock their productive potential. That is the foundation of sustainable growth. Taken together, these initiatives underscore a simple but powerful point.