• The cooperation between Suriname and the World Bank has been given a new impetus, with a special focus on the water, energy and mining sectors. Minister David Abiamofo of Natural Resources (NH) received a delegation led by Diletta Doretti, Country Representative for Guyana and Suriname.
• During the meeting, Abiamofo gave an overview of the current programs and challenges within his ministry. Among other things, he pointed to the urgent replacement of the outdated drinking water distribution network in Paramaribo and the implementation of projects such as EMSAGS (Emphasis on Artisanal and Small-Scale Gold Mining) and GEFGOLD (Global Environment Facility), which focus on the formalisation of small-scale gold mining and the phasing out of mercury.
• Cooperation with international partners was also discussed. For example, Suriname is working with the Inter-American Development Bank (IDB), the Caribbean Development Bank (CDB) and the United Nations Development Programme (UNDP), which implements the JET-JP programme, among others, to develop financing-ready plans for a just energy transition domestically.
• An important agenda item was the Suriname Competitiveness and Sector Diversification (SCSD) Project. This project finances the strengthening of governance, transparency and administration in the mining sector, including the establishment of the Minerals Authority Suriname (DAS).
• Additionally, Suriname and the World Bank took another important step in their development cooperation earlier this year. The Suriname Preparedness and Enhancing Resilient Communities Project were approved by the World Bank’s Board of Executive Directors in late February. Aimed at strengthening Suriname’s resilience to disasters, the US$22.2Mn initiative is the first to be financed by the International Development Association (IDA), since the country joined this World Bank institution in October 2024.

(Sources: Suriname Herald & the World Bank)

• The United States relies more heavily on imports from the European Union (EU) than commonly assumed, with the bloc surpassing China in both total value and the number of goods, according to a study from Germany's IW economic institute.
• That dependence has grown significantly over the past 15 years, with the number of product groups in which at least 50% of imports came from the EU rising to over 3,100 last year, from more than 2,600 in 2010, according to IW.
• The findings suggest EU Commission President Ursula von der Leyen could have had a stronger hand in tariff talks with Washington that led to a baseline rate of 15% on most EU goods, it said.
• The total import value of those goods, which include chemical products, electrical goods, machinery and equipment, reached $287Bn, nearly 2.5 times more than in 2010. By comparison, China last year accounted for 2,925 of those product groups, with a total value of $247Bn.
• U.S. dependence on China has decreased significantly over time in the course of an obvious de-risking process, said IW. As a last resort, the EU could target goods critical to the U.S. economy for export restrictions, the institute said.
• While trade data alone cannot fully capture how essential these goods are to U.S. buyers, the study "can be used to make it clear to the Americans that if they continue to raise tariffs, they will be shooting themselves in the foot", said co-author Samina Sultan.

(Source: Reuters)

• The Bank of Japan (BoJ) could raise interest rates in October even if Sanae Takaichi, a proponent of aggressive monetary easing, wins the ruling party's leadership race and becomes the next premier, former central bank executive Tomoyuki Shimoda noted on Thursday.
• Seen as a leading candidate to win the race on October 4, Takaichi stands out for her vocal opposition to the BoJ's rate hikes and her calls to ramp up spending to reflate the economy.
• The prospect of her becoming Japan's next prime minister has led some market players to buy yen and Japanese government bonds on the view that it could discourage the BoJ from hiking rates. But Shimoda, who has experience serving at the BoJ's monetary affairs department, expects the outcome of the leadership race, including a possible victory by Takaichi, to have a limited impact on monetary policy.
• "While she could advocate bigger fiscal spending, I doubt Takaichi can pursue policies that could weaken the yen," Shimoda told Reuters in an interview. A weak yen gives exports a boost, but it has been a source of concern for policymakers because it lifts import costs and has been a factor in inflation staying well above the BoJ's 2% target.
• A yen falling below $150 to the dollar may also draw complaints from the U.S. administration, which is pursuing a weak-dollar policy that would give U.S. exports a boost, Shimoda said. The BoJ will likely raise rates at its October 29-30 meeting if stock prices stay firm and its "tankan" business sentiment survey, due on October 1, does not worsen much, he said.
• The BoJ exited its massive, decade-long stimulus last year and raised short-term rates to 0.5% in January on the view that Japan was on the cusp of durably achieving its 2% inflation target. With inflation staying above 2% for well over three years, the BoJ has signalled its readiness to keep hiking rates.
• The yen's movements have historically had a major impact on BoJ decisions. Its exit from ultra-loose policy and a hike in rates to 0.25% last year came at a time when the yen's plunge to nearly two-decade lows drew political calls for higher rates

(Source: Reuters)

• Bolstered by topline growth, Main Event Entertainment Group Limited (MEEG) reported net profit of J$47.13Mn for the third quarter ended July 31, 2025 (Q3 2025).
• Revenues climbed 43.6% year-over-year (YoY) to J$632.14Mn, driven by the success of a proprietary event that helped offset weaker performance in its core business line. In tandem with the revenue increase, direct costs rose 55.5%, pushing gross profit up 30.1% YoY to J$267.61Mn. However, the gross profit margin contracted to 42.3% from 46.7% in Q3 2024 as direct cost growth outpaced revenue gains.
• Operating expenses (Opex) grew 23.7%, led by a 15.0% rise in administrative and general expenses, as spending increased to support the scaling of new business initiatives. However, with revenue growth far outpacing the growth in Opex, earnings rebounded during the quarter.
• That said, despite a profitable Q3, year-to-date (9M 2025) earnings fell 25.2%, reflecting weak performance in the first half (down 47.0% YoY). Notably, 42.3% of the nine-month net profit was generated in Q3, which helped cushion earnings from the impact of its weak first half.
• Year-to-date revenue total $1.52Bn, representing a 8% $1.43Mn in the prior corresponding period, supported by modest gains from M-Style Décor and Multimedia services. However, revenue from the core Entertainment and Promotions segment remains below prior-year levels.
• The company has expressed plans to use its owned events as a key revenue growth driver. These shifts could allow MEEG to see some levels of recovery in coming quarters, particularly in light of the positive impact a proprietary event had on Q3 earnings.
• In spite of the year-to-date lag in earnings, MEEG has prioritised innovation through digital transformation as one of the company’s key strategic initiatives going forward. The company is set to invest in digital tools, equipment and platforms that will enhance customer engagement, streamline operations, and create cutting-edge entertainment experiences. These initiatives will likely enhance attendee engagement, offering interactive environments and personalised experiences, which are expected to drive event market growth.
• MEEG’s stock price has declined by 28.6% year-to-date, closing at $8.35 as at Wednesday. At this price, the stock is trading at a P/E ratio of 83.5x, which is above the Junior Market Sector average of 28.51x.

(Sources: Main Event Entertainment Group Ltd. Financial Statements & NCBCM Research)

• The Jamaica Tourist Board (JTB) has identified the expansion into emerging markets as a key strategic priority for 2025, with particular focus on Latin America.
• Tourism Director Donovan White announced the initiative during a press conference at JTB’s New Kingston office to launch the Jamaica Product Exchange (JAPEX) 2025. JAPEX is a collaborative effort between the JTB and the Jamaica Hotel and Tourist Association (JHTA) and is positioned as a cornerstone of Jamaica’s tourism growth strategy.
• White noted that Jamaica’s tourism sector cannot rely solely on its existing customer base if it is to achieve sustained growth. Therefore, as part of this strategy, the JTB has institutionalised efforts to grow arrivals from developing economies, with 17 Latin American markets actively targeted. Collectively, these markets represent a population of over 600 million—nearly double the size of the United States, Jamaica’s largest source market.
• This strategic shift is taking place against the backdrop of softer performance in key source markets, with stopover arrivals from the U.S. and Canada both contracting by 3.1% in the first half of 2025 and arrivals out of Europe fell by 7.1%. Of note, arrivals from South American markets offset the contraction, with stopovers increasing by 77.2% over the same period.
• The JTB is also exploring new opportunities in the Indian market as well as the Gulf Cooperation Council (GCC) region, further diversifying its long-term growth drivers.
• JAPEX was highlighted as a critical platform for strengthening Jamaica’s global tourism profile. The trade show convenes international buyers, local suppliers, businesses, and stakeholders, providing opportunities for partnerships and market development. The 2025 edition will be held from September 21–24 at the Montego Bay Convention Centre under the theme “JAPEX 2025: Ready, Set, Go!”.
• In addition to business meetings, international participants will engage in destination immersions, site visits, and product inspections, ensuring they depart with a clear understanding of Jamaica’s offerings and investment potential.

(Sources: JIS & NCBCM Research)

• The newly appointed governor of the Central Bank of Trinidad and Tobago (CBTT), Larry Howai, has noted that the interest rate “will have to go up,” suggesting that ongoing negative interest-rate differentials with the U.S. discourage the repatriation of earnings to Trinidad and Tobago, exacerbating ongoing foreign exchange (FX) shortages on the island.
• While he did not specify the magnitude or timing of the increase, Fitch Solutions anticipates that the CBTT will raise the policy rate to approximately 5.50%-6.00% through 2026 as the U.S. Fed begins its easing cycle towards 3.50% over the same period. Historically, the policy rate differential averaged just under 250bps from 2010 to 2025, and Fitch anticipates a return to this stance.
• Howai outlined several possible non-monetary initiatives to address imbalances in the FX market, including tighter FX management, credit controls on consumer lending to reduce domestic consumption, and constraints on liquidity, many of which would likely require legislative approval.
• While Governor Howai suggested unequivocally that the central bank would adjust the policy rate to counter capital outflows and stabilise the domestic foreign-exchange market, he emphasised that this was merely an introductory discussion. That said, his announcement marks a notable shift in a monetary policy stance that has remained rigid in the face of inflation, with the policy rate held steady at 3.50% since March 2020.
• Trinidad and Tobago (T&T) maintains a de facto peg^[1] of its local currency against the US dollar (USD), leveraging large foreign-exchange interventions in the domestic market to stabilise the rate and reduce imported inflation. Despite reports that the T&T dollar is overvalued at the current pegged rate of TTD6.77 per USD, Howai asserted that changes to its exchange-rate regime were outside the bank’s mandate and would be left to elected policymakers, with the CBTT instead providing data and analytics to policymakers to assist their decision-making.
• However, the government has rejected calls to devalue the currency, with Finance Minister Davendranath Tancoo insisting that any devaluation of the TTD would threaten inflation and stifle economic activity, especially in industries which use imported goods.

(Source: BMI, A Fitch Solutions Company)

^[1] A de facto peg refers to a situation where a country's exchange rate is not officially fixed (pegged) to another currency, but in practice, it behaves as if it is.

• In an extraordinary session on Monday, September 15, 2025, the Senate of the Dominican Republic urgently approved an amendment to Law 90-24, allowing the Executive Branch to issue and place public debt securities. The amendment raised the public debt ceiling to RD$361.618 billion, adding over RD$10 billion to the previously authorised limit. 
• Law 90-24 established the fiscal rule and was approved by Congress in July 2024. It established a real expenditure growth cap of 3% (7% in nominal terms) and a debt anchor of 40% of GDP by 2035.
• The Government, through President Luis Abinader, justified the measure as part of a fiscal policy "counter-cyclical" aimed at mitigating the effects of the international situation, boosting the economy and guaranteeing sustainability in public finances.
• The amendment raises the debt ceiling from RD$350Bn to RD$361.618Bn, adding over RD$10Bn to the previously authorised limit. Despite intense debate and opposition from Senator Edward Espíritusanto, who criticised the measure as “financial improvisation” and a growing reliance on debt, the bill passed with a majority vote.
• Currently, the Dominican Republic’s fiscal strength reflects improvements in fiscal deficit and debt trends since the pandemic. However, it still faces a shallow revenue base and high exposure to foreign-currency borrowing, which contributes to weaker debt affordability metrics relative to peers. The sovereign debt level in absolute terms and interest burdens are high relative to government revenue.
• That said, the share of foreign currency debt continues to decline gradually, through greater issuance of global peso-linked bonds in recent years.

(Sources: Dominican Today, Moody’s Investors Service & Fitch Ratings)

• The Federal Reserve (Fed) cut interest rates by a quarter of a percentage point on Wednesday and indicated it will steadily lower borrowing costs for the rest of this year, as policymakers responded to concerns about weakness in the job market in a move that won support from most of President Donald Trump's central bank appointees. Only new Governor Stephen Miran, dissented in favour of a half-percentage-point cut.
• The rate cut, along with projections showing that two more quarter-percentage-point reductions are anticipated at the remaining two policy meetings this year, indicates Fed officials have begun to downplay the risk that the administration's voluble trade policies will stoke persistent inflation, and are now more concerned about weakening growth and the likelihood of rising unemployment. The cut, the first move by the policy-setting Federal Open Market Committee since December, lowered the policy rate to the 4.00%-4.25% range.
• In a press conference after the conclusion of the Fed meeting, Chair Jerome Powell said, "In the near term, risks to inflation are tilted to the upside and risks to employment to the downside, a challenging situation" for monetary policymakers. He added, "labour demand has softened, and the recent pace of job creation appears to be running below the break-even rate needed to hold the unemployment rate constant," noting "the marked slowing in both the supply and demand for workers is unusual."
• New economic projections showed policymakers still see inflation ending this year at 3%, well above the central bank's 2% target, a projection unchanged from the last set of forecasts in June. The projection for unemployment was also unchanged at 4.5% and the one for economic growth was slightly higher at 1.6% versus 1.4%.

(Source: Reuters)

• The Bank of Canada reduced its key policy rate to a three-year low of 2.5% on Wednesday, the first cut in six months, and said it would be ready to cut again if risks to the economy increased in the coming months.
• The 25-basis-point cut reflected a weak jobs market and less concern about underlying pressures on inflation, the bank said. It paused its easing campaign in March after reducing rates by a total of 225 basis points in nine months, starting in June last year.
• Bank of Canada Governor Tiff Macklem said the damaging effect of U.S. tariffs meant considerable uncertainty remained. "But with a weaker economy and less upside risk to inflation, Governing Council judged that a reduction in the policy rate was appropriate to better balance the risks going forward," he said in opening remarks to reporters.
• The cut was a unanimous decision of the seven-member Governing Council, Macklem said. The last time the key rate hit 2.50% was in July 2022. The economy initially held up reasonably well in the face of tariffs in some critical sectors. But in the last two months, the job market has slumped, losing more than 100,000 positions. The unemployment rate is at a nine-year high, excluding the COVID-19 pandemic years.
• The bank's next rate announcement is on October 29, followed by another one in December. While economists are widely expecting another rate cut before the end of the year, money markets are not factoring in more easing in 2025.

(Source: Reuters)

• Weighed down by a falloff in earnings and higher operating expenses, Marketing & Advertising Agency, The Limners and Bards Limited (LAB) posted lower earnings attributable to shareholders for the three months ended July 31, 2025 (Q3 2025),
• Total revenues fell 13.0% year over year (YoY) to J$267.14Mn. The lower revenue outturn was accompanied by an 18.6% YoY decline in direct costs to J$165.38Mn. With direct costs contracting at a faster pace than revenues, gross profit margin improved to 38.1% in Q3 2025, up 4.2 percentage points from 33.9% in Q3 2024.
• However, total operating expenses rose by 10.5% during the quarter, driven by higher Administrative (+9.4%) and Selling & Distribution (+289.7%) costs. This pressured profitability, with operating profit falling 25.3% YoY to J$22.33Mn. Ultimately, net profit declined 36.5% to J$21.69 million, down from J$34.13 million in the prior-year quarter.
• The Q3 earnings performance, along with weak earnings from the start of the financial year, contributed to the company’s nine-month results (9M 2025), plummeting 49.4% to J$42.3 million year over year. Management attributed the weaker showing primarily to elevated operating costs tied to strategic hires in business development, content creation, and client service, as well as facility upgrades. These investments, while dampening short-term earnings, are expected to bolster long-term growth potential.
• Looking ahead, management is aiming to stabilise short-term performance while laying the groundwork for sustainable growth. Its strategy is focused on diversifying beyond traditional advertising into digital-first services, influencer and user-generated content solutions, and content ownership through its “Five in 25” film slate. The company also noted growing traction in overseas markets, which now contribute 9% of total revenues. Meanwhile, it is seeking to contain operating costs through smarter resourcing, while protecting growth-focused investments, and embedding technology and flexible talent models to enhance efficiency, speed turnaround times, and strengthen competitiveness.
• LAB’s stock price has declined by 29.6% year-to-date, closing at $0.98 as of Tuesday. At this price, the stock is trading at a P/E ratio of 25.8x, which is above the Junior Market Sector average of 22.1x.

(Sources: The LAB Ltd. Unaudited Earnings Release & NCBCM Research)