World Bank Maintains its 2% Growth Projection For Jamaica This Year

  • The World Bank has maintained its growth projections for Jamaica. In its latest Global Economic Prospects report for 2023, the World Bank estimates the local economy to grow by 2%
  • Its projection for growth in 2024, however, improved by 0.5 percentage points compared with January's forecast. Jamaica's economy is set to grow by 1.7% in 2024, with a marginal decline to 1.5% in 2025.
  • However, it is important to note that there are downside risks to this forecast including a possible deeper-than-expected slowdown in the global economy, which could undermine the recovery in tourism and depress remittance inflows. Additionally, the further deterioration in financial market conditions in the US could curtail consumption and derail longer-term growth. Lastly, worsening crime, social unrest, and potential natural disasters could also impair growth.
  • The World Bank's forecast for Latin America and the Caribbean sets growth for this year at 5.1%, which is 0.5 percentage points lower than the projection in January. The estimate for 2024 saw a 0.1 percentage point downgrade, set at 5.6%.
  • The region's growth should be led by Guyana, with GDP expected to increase by 25.2% this year, and 21.2% in 2025.

(Source: RJR News)