News Americas, NEW YORK, NY, Feb. 15, 2023 : What is GDP? It is a commonly used indicator of the economic health of a country. It represents the total monetary value of all goods and services produced within a country’s borders over a specific period of time, usually a year.
This article will first explain the relationship between GDP and economic growth. Later on, we will share with you what the CDB has forecasted regarding Caribbean Economic growth in 2023.
How Are GDP And Economic Growth Related To Each Other?
GDP can be calculated using various methods, including income, expenditure, and production approaches.
Economic growth refers to the increase in the production and consumption of goods and services in an economy over time. Economic growth is usually measured by the increase in GDP over a period of time, typically a year. It is often used as an indicator of a country’s overall economic health and is influenced by many factors, such as technological progress, population growth, and investment.
While GDP is often used as a proxy for economic growth, it is important to note that it only measures the monetary value of goods and services produced and does not account for factors such as income distribution, quality of life, and environmental impact. Therefore, while a high GDP may indicate strong economic growth, it does not necessarily mean that a country’s citizens are experiencing a high quality of life.
Now that you understand how GDP and economic growth related, let’s check what the CBD had to say about the economic growth of the Caribbean in 2023.
CDB Forecast For Caribbean Economic Growth In 2023
According to Mr. Isaac Solomon, the Caribbean Development Bank Vice President (Operations), regional growth is expected to be 5.7 percent by 2023. This forecast is based on continued tourism growth and investment in the energy industry. However, there are risks associated with Advanced Economies, which are expected to see lower growth than in 2022. He said that “looking ahead,” he stated, “for 2023, we believe that even facing multiple challenges to their economic performance, Borrowing Member Countries (BMCs’) will keep improving in the medium-term. While we are cautiously optimistic regarding the near-term outlook and recognize the uncertainty surrounding the war in Ukraine’s outcome, it is hard to predict growth with certainty.”
Mr. Solomon presented a review of the Bank’s economic performance in 2022 at the CDB Annual News Conference in Barbados on January 18. He stated that regional economic growth averaged a strong 10.3% due to increased energy production in Trinidad and Tobago and Guyana, increased prices of international oil for commodity-exporting nations, and 4.6% economic growth in countries that are dependent on tourism. He stated that this performance contributed to increased Government revenues as well as improved fiscal positions.
The Bank Executive stated that the Region is facing challenges due to past economic performance and global conditions. He also said that prolonged shocks have compounded its socioeconomic problems. However, through its wide range of grants and loans, the CDB provides much-needed support to its 19 BMCs. In 2022, the Bank disbursed USD 292.5 million across the Region and approved 15% more loans and grants, totaling USD 158.1 million. Regionally, there are more than 65 CDB-financed projects. They include youth, agriculture, and education, as well as infrastructure, renewable energy, and trade.
The Vice President shared some suggestions that could be implemented to increase the resilience and growth of Caribbean societies and economies. These include:
- Supporting comprehensive debt management strategies and public financial management;
- Promoting accessibility to adequate and affordable financing;
- Gender equality and women’s reintegration in the workforce and the prevention or discrimination of women;
- Encouraging a private sector ecosystem that is innovative;
- Financial inclusion for the most vulnerable;
- And key priority actions to strengthen governance capacity to deliver by implementing cross-sectoral programs and policies.
He stressed that the Bank is an open partner who is looking for new avenues and opportunities in order to finance the Region’s development and growth. There is still much work to be done, even though more capital is needed.
What Is The CDB? (Caribbean Development Bank)
The Caribbean Development Bank (CDB) is a regional development bank. It provides loans at near-market rates from the Bank’s ordinary capital and grants from the Special Development Fund (SDF). It also provides free technical assistance. The Bank’s loans serve the sustainable social and economic development of the Region.