The Economic Commission for Latin America and the Caribbean (ECLAC) is forecasting that economic growth in the Caribbean, except Guyana for 2026, will be 1.8 per cent, at a slightly slower pace compared with 2025.
It said economic expansion is subject to tourism and construction trends in the subregion, which is highly vulnerable given its dependence on imported energy, high transport costs and exposure to natural disasters.
In its ‘Overview of the Economies of Latin America and the Caribbean,’ released here on Tuesday, ECLAC said that economic growth in Latin America and the Caribbean remained subdued in 2025, constrained by weak domestic demand and an uncertain global environment.
It said external sector results were mixed: some countries recorded higher exports of goods and services, while others were affected by pressure on the terms of trade and greater trade volatility.
Latin America and the Caribbean will experience moderate economic growth in 2025. The slight uptick from 2.3 per cent in 2024 to a projected 2.4per cent this year is supported mainly by domestic demand in several economies, especially private consumption.
ECLAC says the regional economy remains largely dependent on services sectors, which account for the bulk of value added and continue to drive job creation and the recovery from the coronavirus disease (COVID-19) pandemic.