English-speaking Caribbean faces economic uncertainty

Outlook

Some of the English-speaking Caribbean economies, such as Jamaica, have seen a shift to firmer, if still sluggish, growth in recent years. However, this has yet to reach levels able to boost employment (especially among youth) or reduce high crime levels.

The sub-region is deeply affected by events beyond its control: hurricanes, the vagaries of international tourism trends and increasing international pressures on offshore tax havens.

Although remittances are a key source of income in many Caribbean states, the outflows of skilled workers to the United States and elsewhere also raise questions as to whether the benefits outweigh the negative impact on local economies.

Impacts

• Absent significant improvements in the economic outlook, weariness with fiscal austerity in some countries will raise political risks.
• High crime rates will hinder investment and tourism, with the latter trending towards cruise ship visits rather than overnight stays.
• Increasing scrutiny of money-laundering and corporate transparency will affect some island ‘offshore’ economies.