Caribbean Economics Quarterly: Volume 15, Issue 2: How are External Forces Impacting Growth, Trade, and Investment in the Caribbean?
Peer Reviewed
Date issued
December 2025
Subject
Investment;
Integration and Trade;
Tariff System;
Finance;
Tourism;
Petroleum;
Commodity Export;
Trade Impact;
Development Impact;
Economic Impact;
Foreign Direct Investment;
Energy Resource;
Natural Disaster;
Import ;
Export;
Trade in Services;
Trade in Goods;
Climate Finance
JEL code
E00 - Macroeconomics and Monetary Economics: General: General;
E60 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General;
F01 - Global Outlook;
F13 - Trade Policy • International Trade Organizations;
F32 - Current Account Adjustment • Short-Term Capital Movements;
F41 - Open Economy Macroeconomics;
F62 - Macroeconomic Impacts;
H30 - Fiscal Policies and Behavior of Economic Agents: General;
H62 - Deficit • Surplus;
H68 - Forecasts of Budgets, Deficits, and Debt;
O10 - Economic Development: General;
O11 - Macroeconomic Analyses of Economic Development;
O54 - Latin America • Caribbean;
P45 - International Trade, Finance, Investment, and Aid;
Q02 - Commodity Markets;
Q20 - Renewable Resources and Conservation: General;
Q30 - Nonrenewable Resources and Conservation: General;
Q40 - Energy: General;
Z32 - Tourism and Development;
Q54 - Climate • Natural Disasters and Their Management • Global Warming
Country
Barbados;
Guyana;
Jamaica;
Trinidad and Tobago;
Suriname;
Bahamas
Category
Magazines, Journals and Newsletters
This edition of the Caribbean Economics Quarterly reviews global and U.S. policy shifts, commodity market trends, and their impact on six Caribbean economies: The Bahamas, Barbados, Guyana, Jamaica, Suriname, and Trinidad and Tobago. Despite global volatility and U.S. trade policy changes, the region has shown resilience, with growth driven by tourism in The Bahamas and Barbados, oil production in Guyana, and stable non-energy sectors in Suriname and Trinidad and Tobago. U.S. tariffs affected less than 5% of Caribbean exports, but indirectly there could be other effects through the channels of weakening U.S. labor markets, cautious investment, inflationary pressures, and supply-chain disruptions. Commodity prices are expected to decline, easing import costs but moderating Guyana's oil boom. Hurricane Melissa caused severe damage in Jamaica, weighing on regional growth. Opportunities lie in tourism diversification, renewable energy, technology-driven investment, and continued oil expansion in Guyana and Suriname, supported by geographic trade diversification.
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