By: Staff Writer
April 28, 2026
The Caribbean Development Bank in their Caribbean Economic Review and Outlook 2025 – 2026, said that growth in the Caribbean slowed in 2025 except for in Guyana.
The report said: “Excluding Guyana, growth slowed to 0.6 percent from 1.4 percent as activity weakened across most Borrowing Member Countries (BMCs). Including Guyana, regional growth was 4.7 percent, down from 8.3 percent in 2024, with overall growth still driven largely by Guyana’s performance.
“Among commodity exporters, outcomes were mixed: Suriname recorded moderate gains, supported by offshore energy related investment, while growth was flat in Trinidad and Tobago amid weak performance in the energy and non-energy sectors.”
The report also said: “Service-exporting economies recorded softer outturns as tourism momentum eased, source-market conditions weakened, and climate-related disruptions, notably Hurricane Melissa, dampened capacity and demand in Jamaica and Haiti. Haiti’s economy contracted for the seventh year, as insecurity also continued to suppress economic activity.”
The report continued: “Despite subdued growth, labour market conditions remained broadly stable, with unemployment declining in most reporting BMCs. However, longstanding gender and youth disparities persisted, alongside labour shortages. Inflation moderated across the region but remained above pre-pandemic averages. Lower global commodity prices helped push inflation below 2024 levels in nearly all BMCs.
“Fiscal consolidation momentum, however, weakened across some economies. The regional primary surplus, excluding Guyana, narrowed to 1.3 percent of GDP in 2025 from 1.6 percent, reflecting slower revenue growth and rising spending pressures.
“Including Guyana, whose sizeable deficit reflected substantial capital expenditure, the regional overall primary surplus shifts to 0.2 percent of GDP. Debt remained elevated in several economies, with nine BMCs recording central government debt‑to‑GDP ratios above 60.0 percent.
“External balances also came under pressure. Merchandise trade deficits widened in most economies, but most maintained adequate international reserves, supported by external financing, and remittances.
“Financial sectors remained broadly stable, supported by adequate capitalisation, strengthened credit growth, and high liquidity.
“Continued regulatory reforms further supported financial‑sector resilience.”