These Ten Caribbean Nations Are Poised For Positive Economic Growth In 2024

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News Americas, Washington, D.C., Weds. June 12, 2024: Ten Caribbean nations are forecasted to show positive growth this year, according to the World Bank’s latest Global Economic Prospects report. The overall growth for the Caribbean is expected to strengthen to 7.1 percent in 2024, with a continued robust performance in 2025 at 5.7 percent. Excluding Guyana, the growth rate is forecasted at 3.9 percent in 2024 and 4 percent in 2025. Analysts attribute this growth to a moderate recovery in tourism and remittances.

Caribbean Countries Set To Show Positive Growth in 2024

Country2024 Growth (%)Guyana34.3Dominican Republic5.1Saint Vincent and the Grenadines5Dominica4Barbados3.7Belize3.4Suriname3St. Lucia2.9The Bahamas2.3Jamaica2

Global Outlook

The global economy is expected to stabilize for the first time in three years in 2024, although at a weaker level compared to recent historical standards. Global growth is projected to hold steady at 2.6% in 2024 before slightly increasing to an average of 2.7% in 2025-26. This is below the 3.1% average seen in the decade before COVID-19. The forecast suggests that from 2024-26, countries representing more than 80% of the world’s population and GDP will grow more slowly than in the pre-COVID-19 decade.

“Four years after the upheavals caused by the pandemic, conflicts, inflation, and monetary tightening, it appears that global economic growth is steadying,” said Indermit Gill, the World Bank Group’s Chief Economist and Senior Vice President. “However, growth is at lower levels than before 2020. Prospects for the world’s poorest economies are even more worrisome. They face high levels of debt service, constricting trade possibilities, and costly climate events. Developing economies will need to encourage private investment, reduce public debt, and improve education, health, and basic infrastructure. The poorest among them, especially the 75 countries eligible for concessional assistance from the International Development Association, will need international support to achieve this.”

“Although food and energy prices have moderated globally, core inflation remains relatively high and could stay that way,” said Ayhan Kose, the World Bank’s Deputy Chief Economist and Director of the Prospects Group. “This could lead central banks in major advanced economies to delay interest-rate cuts. An environment of ‘higher-for-longer’ rates would mean tighter global financial conditions and much weaker growth in developing economies.”

US Slaps Sanctions On Three Guyanese, Including Government Official

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News Americas, New York, NY, Tues. June 11, 2024: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), has slapped sanctions on three Guyanese, including a government official.

OFAC has imposed sanctions on Thomas Nazar Mohamed, his son, Azruddin Mohamed, and their company, along with designating two other entities, Hadi’s World and Team Mohamed’s Racing Team, which are owned or controlled by Mohamed’s Enterprise and Azruddin, respectively as well as on Mae Thomas, the Permanent Secretary of the Guyana Ministry of Labour.

The Guyana government announced on Tuesday that it has placed Thomas on immediate leave following her inclusion in a list of sanctioned individuals by OFAC.

According to OFAC, these sanctions fall under Executive Order 13818, which implements the Global Magnitsky Human Rights Accountability Act targeting perpetrators of serious human rights abuses and corruption worldwide.

“Today’s action underscores our commitment to holding accountable those who seek to exploit Guyana’s underdeveloped gold sector for personal gain,” stated Brian E. Nelson, Under Secretary of the Treasury for Terrorism and Financial Intelligence. He added that the Treasury, in collaboration with U.S. law enforcement, will continue efforts to protect the U.S. financial system from corrupt actors.

The U.S. authorities highlighted that gold is one of Guyana’s main exports but described the industry as highly fragmented, with small-scale mining operations dominating gold production. These small businesses often have informal relationships with larger traders like Mohamed’s Enterprise, leading to international gold sales across markets in the U.S., Canada, UAE, and the EU.

Nazar Mohamed established Mohamed’s Enterprise in Guyana, later expanding to the U.S. and transitioning into gold trading, making it one of Guyana’s largest gold exporters. Azruddin Mohamed eventually took over the enterprise, which now also operates as “Confidential Cambio.”

From 2019 to 2023, Mohamed’s Enterprise allegedly underreported over 10,000 kilograms of gold in import and export declarations, avoiding more than US$50 million in duty taxes to the Guyanese government. OFAC stated that Thomas, as Permanent Secretary to the Minister of Home Affairs, misused her position to benefit Mohamed’s Enterprise and Azruddin in exchange for cash payments and high-value gifts, influencing contract bids and approval processes for weapons permits and passports.

The Guyana government acknowledged the U.S. Department of the Treasury’s information regarding the three Guyanese nationals. It stated that the Ministry of Finance and relevant statutory agencies, including the Guyana Revenue Authority, will request further details to support local law enforcement agencies.

“The Government of Guyana takes very seriously the claims contained in the press release and will continue to engage relevant United States entities on these matters. In the meantime, the Permanent Secretary of the Ministry of Labour, Ms. Mae Thomas, has been sent on leave with immediate effect,” the statement read.

President Irfaan Ali’s administration emphasized its commitment to working with the U.S. government on mutual interests, including upholding the rule of law and order.