Caribbean Economies Are Beating Latin America – Here’s Why

News Americas, New York, NY, May 15, 2025: Caribbean nations are outpacing their Latin American neighbors in economic performance, according to a latest World Bank analysis. With tourism rebounding and oil-driven growth in Guyana, the region is solidifying its post-pandemic recovery and emerging as a model for economic management and fiscal discipline.

Tourism-dependent economies such as Barbados, Saint Lucia, and the Dominican Republic have returned to, or exceeded, pre-pandemic levels of GDP. For some, tourist arrivals have even reached pre-COVID-19 numbers, signaling a cooling in the sector’s explosive growth, while others still have room to grow.

Guyana continues to stand out with sustained GDP expansion, fueled by oil exploration and exportation that began in earnest in 2020. The country’s transformation into one of the fastest-growing economies in the world exemplifies the region’s new economic frontiers.

Inflation trends also show a marked divergence from Latin America. Thanks to widespread currency pegs in the Caribbean, the inflation spike of 2022–2023 was more subdued. However, nations like Jamaica and the Dominican Republic – operating under inflation-targeting regimes—experienced more pronounced and persistent inflation pressures. Since 2023, however, prices have been stabilizing, bringing inflation under better control across the region.

Jamaica’s innovative use of the Economic Programme Oversight Committee, (EPOC), to ensure fiscal transparency and build public trust has earned recognition from the World Bank as a potential model for broader adoption in the Latin America and Caribbean, (LAC) region.

Meanwhile, Barbados and Belize – long challenged by high debt burdens – have made significant strides through ambitious fiscal reforms. Both countries have achieved substantial reductions in their debt-to-GDP ratios, showcasing fiscal responsibility and resilience.

The World Bank’s assessment paints a hopeful picture for the investing in the Caribbean, positioning it not only as a recovery leader but also as a source of policy inspiration for the broader LAC region.