Solid growth and contained inflation predicted for Caribbean and Central America

Following a recovery in 2018 after two years of underperformance, the Institute of International Finance (IIF) is projecting solid growth and contained inflation for 2019-20 across Central America and the Caribbean.

In a regional report on Central America and the Caribbean published on February 7, IIF reasoned that growth throughout the region will be supported by overall macroeconomic policy improvements.

Head of LatAm Research, Martin Castellano, also reckons that positive spillovers from the US economy – the region’s main market—through trade, tourism, remittances, and investment would be somewhat less supportive in the coming years.

“Downside risks to the outlook are linked to weaker-than-expected global growth, increased protectionism, and policy slippages in some countries amid structural weaknesses that could result in lower capital inflows,” the report said.

JAMAICA GATHERING GROWTH MOMENTUM

A global association of the financial industry, with close to 500 members from 70 countries, IIF forecasts growth in Jamaica to remain close to two per cent this year supported by private consumption, before moderating somewhat in 2020. more



Leave a Reply