WASHINGTON, (CMC)— The World Bank Tuesday predicted that economic growth in the Caribbean is expected to strengthen to 7.1 per cent this year, with robust performance continuing in 2025 at 5.7 per cent.

In its latest Global Economic Prospects report released in Washington, United States, the financial institution said that excluding Guyana, growth is forecast at 3.9 per cent in 2024 and four per cent in 2025, driven by moderate tourism recovery and remittances.

According to the World Bank report, real gross domestic product (GDP) growth for The Bahamas in 2024 will be 2.3 per cent declining to 1.8 per cent the following year, while Barbados’ economy will register a 3.7 per cent growth, dropping to 2.8 per cent in 2025.

The report said that Dominica’s growth of 4.6 per cent this year, will decline slightly to 4.2 per cent the following year with Grenada registering growth of 4.3 per cent this year dropping to 3.8 per cent in 2025.

The World Bank report predicts that Guyana’s economic growth this year will be 34.3 per cent before declining to 16.8 the following year.

Haiti is the only Caribbean Community (Caricom) country to register negative growth this year, pegged at minus 1.8 per cent, but improving to 1.9 per cent the following year.

Jamaica’s economic growth this year is projected at two per cent declining slightly to 1.6 per cent in 2025, while St Lucia’s economic growth has been put at 2.9 and 2.4 per cent respectively for the next two years.

St Vincent and the Grenadines’ economic growth for this year is put at five per cent, declining to 3.9 per cent next year, while the Dutch-speaking Caricom country of Suriname will register growth of three per cent annually for the next two years.

In the Global Economic Prospects report, the World Bank noted that in the latter part of 2023, Latin America and the Caribbean (LAC) experienced a slowdown in economic growth due to the lingering effects of monetary tightening.

It said while early 2024 showed some signs of economic firming, the recovery has been uneven across the region.

According to the outlook, growth in LAC is projected to further decline to 1.8 per cent in 2024 before picking up to 2.7 per cent in 2025 as interest rates normalise and inflation decreases. It said commodity prices are expected to support LAC exports, although subdued growth in China could limit demand for key commodities.

“The forecast is subject to several risks, predominantly to the downside. These include potential tighter global financial conditions, elevated local debt levels, and a slowdown in China’s growth affecting LAC’s exports,” the report said.

“Climate change-related extreme weather events also present a risk. Conversely, stronger economic activity in the United States could positively impact Central America and the Caribbean,” it added.

The World Bank said while facing economic headwinds in 2024, LAC is expected to see a gradual recovery in 2025, supported by declining inflation and accommodative monetary policy.

“The region’s economic performance will be influenced by a mix of domestic and international factors, with commodity prices and global demand playing moderate roles,” World Bank said.

In its report, the World Bank said that the global economy is expected to stabilise for the first time in three years in 2024, but at a level that is weak by recent historical standards.

The World Bank’s latest Global Economic Prospects report noted that global growth is projected to hold steady at 2.6 per cent in 2024 before edging up to an average of 2.7 per cent in 2025-26.