BRIDGETOWN – Hurricanes, rising debt levels and global uncertainty placed heavy pressure on Caribbean economies in 2025, with regional economic growth slowing to just 0.6 percent, the lowest level in years, according to the latest Caribbean Economic Review and Outlook 2025-2026 by the Caribbean Development Bank.
The report shows that, excluding Guyana, regional growth fell from 1.4 percent in 2024 to 0.6 percent in 2025, highlighting the economic fragility of many Caribbean nations.
When Guyana is included, however, overall regional growth rises to 4.7 percent, largely due to the country’s booming oil sector, which continues to outperform the rest of the region and drive Caribbean economic statistics upward.
The report describes Guyana as the clear outlier in the regional economy, with oil revenues significantly boosting production, investment and export performance.
Tourism remained one of the main pillars supporting economic activity across the Caribbean, although growth in the sector slowed compared to previous years.
The report notes that tourism continued to provide important income and employment for island economies, but rising global uncertainty and weaker consumer spending in major tourism source markets limited stronger expansion.
Commodity-exporting economies across the region showed mixed results, with some benefiting from international prices while others faced logistical and production challenges.
Several Caribbean countries also suffered direct climate-related economic setbacks.
Jamaica was hit by Hurricane Melissa, causing damage to infrastructure, agriculture and tourism activity, while Haiti saw its economy contract for the seventh consecutive year amid ongoing insecurity and political instability.
Despite these challenges, labor markets across the region remained relatively stable, according to the report.
Inflation also eased compared to previous years, although price levels remain above pre-pandemic levels, continuing to affect household purchasing power.
Fiscal performance varied widely among Caribbean countries, with the CDB warning that several economies continue to carry high debt burdens, limiting their ability to respond to future crises.
Looking ahead, the Caribbean Development Bank projects modest improvement for 2026.
Regional growth is expected to rise to 1.1 percent excluding Guyana, and 6.2 percent when Guyana is included, again largely fueled by expanding oil production in the South American nation.
However, the bank warns that the outlook remains highly uncertain.
Geopolitical tensions, climate change risks and public finance vulnerabilities continue to pose serious threats to the region’s economic stability.
For islands like Curaçao, where tourism remains a major economic pillar and external shocks can quickly affect growth, the report serves as another reminder of the urgent need for economic diversification and stronger resilience planning.