Business
Caribbean Development Bank states that Caribbean recorded modest economic growth in 2013
Despite generally lower commodity prices, regional growth was led by commodity exporters. In Guyana, Haiti and Suriname, rates of expansion between four and sic per cent were driven mainly by strong construction and agriculture out turns and small, but noteworthy contributions, from the rapidly developing tourism industries.
“Growth in Guyana and Suriname was driven, as well, by continued investment in small-scale gold mining operations. In Belize and Trinidad and Tobago, overall growth performances improved, in line with the general upturn in construction and tourism activity.”
The CDB said that Trinidad and Tobago also benefited from a rebound in manufacturing, as cement production recovered from the effects of industrial unrest in 2012. “Notably, the contraction in oil production in both of these countries was attributed, not to lower prices, but to ongoing maintenance issues, in one case, and to reduced oil field yield, in the other.”
The CDB said that economic growth did not exceed three per cent in the services-based economies; and in some instances, activity declined. It said moderate growth of between one and three per cent was recorded in Antigua and Barbuda, The Bahamas, Cayman Islands, Grenada, St. Kitts and Nevis, St. Vincent and the Grenadines and Turks and Caicos Islands was linked to the general improvement in construction and tourism.
“Economic activity was sluggish, flat or contracted in the remaining BMCs, (Borrowing member countries) as key service industries bucked regional trends. Based on indications that a first-half contraction was negated by a turnaround in the agriculture, manufacturing and tourism sectors, in the second half of the year, Jamaica is estimated to have recorded no growth in 2013.”
The CDB said that for Anguilla and Barbados, 2013 marked the sixth consecutive year of economic stagnation. “The slight contraction estimated for Barbados was driven by declines in tourism and construction activity during the year. Growth in Anguilla’s tourism, on the other hand, was offset by weak performances in construction and financial services. Similarly, economic activity also declined in the British Virgin Islands and St. Lucia as growth in tourism activity failed to dampen the impact of declines in construction and financial services.”
But the CDB said notwithstanding the strengthening of economic activity, inflationary pressures remained subdued and unemployment levels remained high across the region. It said consumer price inflation, in most regional economies, continued to moderate, in line with international commodity prices. Average inflation for the region is estimated at 2.3 per cent in 2013, down from five per cent in 2011 and 3.5 per cent in 2012. Higher inflation in Jamaica was mainly linked to depreciation of the exchange rate.
