Caribbean economies to grow by 2.5 per cent in 2016 – World Bank
The World Bank is forecasting 2.5 per cent growth for Caribbean countries in 2016.
The projection is contained in the latest semi-annual report by the World Bank’s Chief Economist Office for Latin America and the Caribbean.
It says the Latin America and Caribbean region is expected to contract by zero point nine per cent in 2016.
South America, which has borne the brunt of the fall in commodity prices and in Chinese growth, is expected to contract by more than two per cent this year.
However, it says for Mexico, Central America and the Caribbean growth is expected to remain positive in 2016 coming in at 2.5 per cent.
The World Bank explains that this is because these countries depend less on commodity exports and are more closely tied to the economic recovery in the United States.
Meanwhile, the World bank says while remittances to all developing countries edged up slightly in 2015, the Latin America and Caribbean region saw the most rapid growth rate in remittances in 2015.
The Bank says the region’s 4.8 percent growth was due to the recovery in labour markets in the United States.
And it says remittances are expected to reach US$69.3 billion this year, up from US$66.7 billion last year.
Overall, the World Bank said remittances to developing countries grew only marginally in 2015, as weak oil prices and other factors strained the earnings of international migrants and their ability to send money home to their families.