WASHINGTON, DC—THE International Monetary Fund (IMF) projects that the Caribbean region will maintain stable economic growth in 2025. However, the Fund cautioned that growth is not evenly distributed across all sectors.
The IMF believes the region has largely moved past the challenges of the post-pandemic era, which previously impacted economic growth across the Caribbean Community.
During a press conference in Washington, DC, the IMF shared data with SKNVibes News, indicating that the region experienced an estimated 2.2% growth in 2023, followed by 2.4% growth in 2024, despite ongoing geopolitical tensions, inflation, wars, and supply chain bottlenecks.
At the press conference on February 6, IMF Director of Communication Julie Kozack explained that the region’s real GDP has stabilized since the pandemic, contributing to a positive economic outlook.
She clarified that the data excludes Guyana and Haiti and that the 2025 growth rate is expected to remain at 2.4%. A closer analysis of the figures reveals that light manufacturing and tourism play key roles in shaping the region’s economic trajectory.
For tourism-dependent economies, the IMF projects continued growth but at a slower pace. Kozack noted that visitor arrivals have now returned to pre-pandemic levels. Data shows that key source markets for the region recorded an increase in arrivals compared to 2023 figures. (Source: Tourism Analytics).
For commodity-exporting nations, the IMF acknowledged difficulties in the energy sector. However, the non-energy sector has performed well, driven by supportive economic policies.
“I can also add that inflation in most Caribbean countries has moderated significantly over the past few years,” Kozack stated in response to an SKNVibes inquiry. She attributed the decline to lower global commodity prices and easing supply chain disruptions. “We expect inflation to remain moderate in the years to come.”
While specific data for St. Kitts and Nevis has not yet been fully published, the IMF expects moderate growth to continue in 2024. The Fund also confirmed that its staff will visit the Federation next week for an Article IV consultation to assess the state of the economy.
The final report is expected to be completed and published by March or April at the earliest.
