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T&T behind Haiti in economic growth

Tuesday, August 12, 2014

T&T ranks ninth among the Caribbean’s fastest growing economies, according to data just compiled by the United Nations Economic Commission for Latin America and the Caribbean (Eclac).

Eclac’s recently unveiled projections for growth in 2014 shows T&T, with just two per cent economic growth expected this year, lagging several percentage points behind the region’s fastest growing economy, the Dominican Republic, which is projected to grow by five per cent.

Next in the Eclac ranking is Guyana at 4.5 per cent and Suriname at 4.4 per cent. Guyana led the region in GDP growth last year at 5.3 per cent, according to Eclac. Other Caribbean economies expected to enjoy faster economic growth than T&T this year are Haiti, St Kitts and Nevis, Belize, the Bahamas and St Lucia.

The slowest-growing economy is Barbados, with a projected growth of just 0.5 per cent this year.

Eclac said it cut its regional growth forecast for Latin America and the Caribbean to 2.2 per cent, down from its April estimate of 2.7 per cent.

According to Eclac’s analysis, the recovery of the United Kingdom and several economies in the euro zone will have a positive impact in the Caribbean, due to the arrival of more tourists.

The main risk for the region is the lower growth forecast for China this year. 

Regional economies that are more specialised in exporting commodities to that country could be affected if the Asian giant cannot maintain its growth above seven per cent.

Eclac projections for the Caribbean this year (per cent):

• Dominican Republic 5

• Guyana 4.5 

• Suriname 4.4

• Haiti 3.5

• St Kitts and Nevis 3.1

• Belize 2.5

• Bahamas 2.3

• St Lucia 2.3 

• Trinidad and Tobago 2

• Grenada 1.9 

• Antigua and Barbuda 1.6 

• St Vincent & Grenadines 1.5 

• Cuba 1.4 

• Dominica 1.2 

• Jamaica 1.2 

• Barbados 0.5