Caribbean economies are holding up despite global economic troubles, largely thanks to strong tourism and energy sectors, the Inter-American Development Bank Group (IDB) said. The bank’s latest Caribbean Economics Quarterly, “How Are External Forces Impacting Trade, Growth, and Investment in the Caribbean?” looked at six countries – The Bahamas, Barbados, Guyana, Jamaica, Suriname, and Trinidad and Tobago. But serious risks loom, from weakening job markets in North America to jittery investors and changing global trade patterns.
The region’s heavy reliance on outside markets makes it vulnerable to forces it can’t control. Lower commodity prices have helped oil-importing countries, while Guyana’s oil boom keeps its economy roaring. Suriname’s oil sector looks promising too.
The Bahamas and Barbados both had solid tourism numbers in early 2025 as travelers kept coming. Then Hurricane Melissa slammed Jamaica, damaging farms, mines, and tourist areas—a reminder of how fast disasters can upend entire economies across the region.
“The Caribbean has navigated a complex global landscape with commendable stability, but we must remain vigilant,” said Anton Edmunds, the IDB’s general manager for the Caribbean.
Still, Edmunds sees real chances for growth. Expanding beyond traditional tourism, building better energy systems, and pulling in tech investment could all make Caribbean economies tougher. The region’s growing trade ties with different parts of the world also offer some protection from global tensions.
Getting these investments right—in tourism infrastructure, reliable power, and technology—could help Caribbean countries weather future storms and build stronger economies over the next decade.
