Caribbean Projected to Remain Largely Unaffected by Global Trade Tensions – World Bank

The Caribbean region is projected to remain largely unaffected by global trade tensions.

That’s according to the latest Global Economic Prospects report published by the World Bank on Tuesday.

However, the report anticipates average global growth will decline significantly, particularly in the United States.

Mahiri Stewart tells us more.

The World Bank blames rising trade barriers as the most significant inhibitor of global growth going forward.

The multi-lateral says global growth is slowing due to a substantial rise in trade barriers and the pervasive effects of an uncertain global policy environment.

The country anticipated to suffer the most will be Jamaica’s largest trade partner and tourism source market, the United States.

Growth in the United States is projected to fall by nearly half, moving from 2.3 percent to 1.4 percent.

That’s a zero-point-nine-point downward revision compared to the World Bank’s initial forecast in January.

Global growth is also revised downwards from 2.8 percent in to 2.3 percent for 2025.

For Latin America and the Caribbean, regional growth is projected to hold steady at 2.3 percent this year, with most major economies outside the Caribbean showing little dynamism.

The World Bank says all countries in the region face an increase in US tariffs of 10 percent.

It says some countries, notably Brazil and Jamaica, also have tariffs on U.S.-bound steel and aluminium exports.

However, the World Bank says growth in Caribbean economies is projected to remain solid, reflecting Guyana’s continuing oil boom, with aggregate Gross Domestic Product, GDP, expanding by 3.9 percent in 2025.

Growth in the sub-region excluding Guyana will moderate to 3 percent in 2025.

This is underpinned by tourism and other service activities.

Jamaica’s growth is projected to be more tepid, at 1.7.