News Americas, New York, NY, October 9, 2024: The World Bank has urged Caribbean countries to take advantage of key opportunities and implement structural reforms to foster sustainable economic growth. In the latest report, “Wealth taxation for equality and growth”, published on October 9, the World Bank stressed that the region must focus on fiscal reforms, increase investment and harness the potential of rapprochement to break out of its cycle of low growth.
William Maloney, the World Bank’s Chief Economist for Latin America and the Caribbean, stressed that the Caribbean must improve its fiscal space, reduce the tax burden on productive sectors and attract investment by increasing government efficiency. He also emphasized the importance of wealth taxes as a tool to create fiscal space and promote equality.
“The region has made progress in managing inflation and stabilizing its macroeconomic environment, but more is needed to boost growth. This is a critical moment to attract investment, spur innovation and create more and better jobs,” said Carlos Felipe Jaramillo, World Bank Vice President for Latin America and the Caribbean.
Economic growth for selected Caribbean countries – 2024-2026
| country | Growth 2024 (%) | Growth 2025 (%) | Growth 2026 (%) |
|---|---|---|---|
| Barbados | 3.9% | 2.8% | 2.3% |
| Belize | 4.3% | 1.2% | 0.5% |
| Dominica | 4.6% | 4.2% | 3.2% |
| Grenada | 3.2% | 4.7% | 4.4% |
| GUYANA | 43% | 12.3% | 15.7% (2028) |
| Haiti | -4.2% | 0.5% | 1.5% |
| Jamaica | 0.8% | 2.2% | 1.6% |
| Saint Lucia | 3.4% | 2.6% | 2.3% |
| Saint Vincent and the Grenadines | 5% | 3.5% | 2.9% |
| Suriname | 2.9% | 3% | 3.1% |
| Trinidad and Tobago | 2.2% | 2.3% | 0.9% |
Key recommendations from the World Bank Report
- Taxes on wealth and fiscal space: The World Bank suggests that Caribbean nations should reconsider how tax systems can generate revenue while stimulating growth. Wealth taxes can be used to address income inequality and create fiscal space for investment.
- Approaching opportunities: Despite having competitive wages, the region has not fully capitalized on the opportunities ahead due to high capital costs, weak education systems and inadequate infrastructure.
- Foreign Direct Investments: LAC has seen a decline in foreign direct investment levels, and the World Bank report notes that addressing infrastructure issues and social instability could help attract more investment.
With US interest rates expected to drop, the World Bank sees an opportunity for Caribbean economies to seize the momentum and accelerate their development. However, this will require a concerted effort in governance reforms and public investment across the region.
