• The Economic Commission for Latin America and the Caribbean (ECLAC) now estimates a 39.2% increase in Guyana’s economic growth this year, a figure higher than its earlier projection.
• Guyana should see massive economic expansion continue this year, largely due to developments in the country’s nascent oil and gas sector. The 39.2% growth rate forecast is the highest in the region. In April 2023, ECLAC estimated that Guyana’s 2023 growth rate would be about 37.2%. This new forecast is therefore higher by 2 percentage points. For 2024, ECLAC forecasts a 28.9% growth rate for Guyana.
• That being said, sans Guyana, Latin America and the Caribbean (LAC) region remains on a “low-growth path.” The LAC region should only experience a 2.2% growth in real Gross Domestic Product (GDP). Notably, if that 2.2% figure is disaggregated by sub-regions, the Caribbean, excluding Guyana, should record an increase of 3.4% (compared to 6.4% in 2022).
• If Guyana’s growth is factored into the Caribbean’s overall growth rate, the region should see a 9.4% GDP increase this year.
• Meanwhile, South America is forecast to register an increase of 1.5% (compared to 3.8% in 2022), while Central America and Mexico should record a 3.5% growth rate (compared to 4.1% in 2022). Furthermore, the ECLAC noted that the slow regional growth should be accompanied by a slowdown in job creation.  

(Sources: CariCris & ECLAC -Preliminary Overview of the Economies of Latin America and the Caribbean)

• Mexican and U.S. officials agreed to keep border crossings open, Mexican President Andres Manuel Lopez Obrador said on Thursday, December 28, following a visit by U.S. Secretary of State Antony Blinken that focused on securing Mexico's help to stem record-high migration.
• The United States earlier this month temporarily shuttered several crossings, including two key rail bridges, to redeploy enforcement resources elsewhere across the border amid soaring migrant numbers, a pivotal issue in next year's U.S. elections.
• Lopez Obrador said Wednesday's meetings with the U.S. delegation, which included Blinken and Homeland Security Secretary Alejandro Mayorkas, were "direct," and he praised the Biden administration's relationship with Mexico.
• Lopez Obrador earlier this month said he would help the United States by boosting measures to curb migration without giving details. U.S. and Mexican officials have not released any more information about possible agreements reached during the meeting.

 (Source: Reuters)

• The Organization of the Petroleum Exporting Countries (OPEC) is facing weakening demand for its crude in the first half of 2024, just as its global market share declines to the lowest since the Covid-19 pandemic on the back of output cuts and member Angola's exit, according to Reuters calculations and data from forecasters.
• The trend means the group would struggle to ease production cuts unless global oil demand accelerates or OPEC is prepared to accept lower oil prices.
• Angola said it is leaving OPEC from January 2024, following exits by Ecuador in 2020, Qatar in 2019 and Indonesia in 2016. Angola's departure will leave the group with 12 members and take its production below 27 million barrels per day (bpd) - less than 27% of the total global supply of 102 million bpd.
• The last time OPEC's market share fell to 27% was during the 2020 pandemic, when global demand dropped by 15-20%. Since then, global demand has recovered to record levels, meaning OPEC has lost market share to rivals. As of November 2023, OPEC's crude oil output accounted for 27.4% of the total market, down from 32-33% in 2017-2018, according to figures from the group's monthly reports.
• The Energy Information Administration sees demand for OPEC crude falling in the second quarter from the first, based on a Reuters calculation. The Energy Information Administration sees demand for OPEC crude holding steady, while OPEC also sees it falling, albeit from a higher level than the other two forecasters.

(Source: Reuters)

• The number of Americans filing initial claims for unemployment benefits rose last week, indicating the labor market continues to cool in the fourth quarter.
• New state unemployment benefit claims rose by 12,000 last week to 218,000, according to the Labor Department. A Reuters poll showed economists expected an increase to 210,000 initial claims for the week ended Dec. 23.
• The rolls of those receiving benefits after one week of aid rose 14,000 from the week prior, reaching 1.875 million. Continued unemployment claims, a measure for hiring, have increased since mid-September, indicating those already out of work may be having difficulties getting a job.
• In November's economy, 199,000 new jobs emerged, up from 150,000 in October, according to the Labor Department's non-farm payrolls report. The unemployment rate also fell moderately from the month prior, to 3.7% from 3.9%.
• Amid slower job growth and milder inflation, the Federal Reserve has left its benchmark interest rate unchanged for three consecutive policy meetings, and economists expect its hike campaign to be at an end.

(Source: Reuters)

• Minister of Finance Dr. Nigel Clarke, says the government is moving to begin regulating virtual assets such as cryptocurrencies. This is in keeping with the recommendations of global financial watchdog, the Financial Action Task Force (FATF), in relation to Jamaica’s compliance with the anti-money laundering and combating the financing of terrorism (AML/CFT) regulations.
• Clarke explains that as the technologies surrounding virtual assets advance, so too must Jamaica’s financial regulation. He further stated, “Since Jamaica’s framework has to date not specifically addressed the risk caused by virtual asset providers, Jamaica’s rating was downgraded from compliant to partially compliant.”
• “This is a process that is always ongoing and we have to keep the fabric of our regulation in step with the advancements of the world and new technologies that can allow for the abuse of procedures and laws,” he stated. Dr. Clarke further adds that the Financial Services Commission FSC, the current regulator for this sector, is spearheading the work to develop draft regulations for virtual assets.
• Overall, Jamaica has made major strides in achieving compliance with the AML/CFT of the FATF. There are 40 FATF recommendations that determine a country’s capacity to combat the risk posed by criminals to launder proceeds of crime and finance terrorism. The government recently applied for a rerating of Jamaica’s compliance with the 40 FTAF recommendations and received an improved report.
• The report concluded that Jamaica was either fully or partially compliant with 37 of the 40 FATF recommendations. This marks a significant improvement compared to a 2015 assessment that concluded Jamaica was compliant or largely compliant with only 17 of the 40 FATF recommendations.

(Source: JIS)

• The Inter-American Development Bank (IDB) has approved a US$90Mn Conditional Credit Line for Investment Projects, which includes a first individual loan of US$42Mn, to facilitate the digital transformation of Trinidad and Tobago by supporting the expansion and enhancement of the digital economy.
• This programme represents a product that has been borne from over two years of very close collaboration between the IDB and the Ministry of Digital Transformation,' IDB's executive director for the Caribbean Constituency Robert Le Hunte stated.
• The programme has three components. The first will improve the institutional framework for digital innovation by developing the State's capacity to design and implement digital strategies at the national level and improve citizen-facing digital service delivery within key government agencies.
• The second will accelerate the growth of the digital economy through the strengthening of actors central to the digital innovation ecosystem, such as training providers, firms, and entrepreneurs.
• The third will strengthen national cybersecurity capabilities by financing the modernisation of cybersecurity public policy, regulations, standards, and protocols, among other actions.
• Some benefits of this programme include selected government agencies receiving institutional strengthening support to advance their use of data interoperability platforms and cybersecurity management. Over 150 firms will receive support to use digital technology to improve their productivity, and more than 500 public servants will have access to advanced training opportunities in digital service delivery and project management.

 (Sources: CariCris & Inter-American Development Bank)

• Throughout 2023, the Dominican Republic faced challenges due to the high cost of essential products, influenced by global events beyond local control.
• The COVID-19 pandemic and the Russia-Ukraine war significantly impacted the world economy. These events increased freight costs for raw materials and fertilizers, raising food production and housing project costs in the Dominican Republic.
• Despite this, prices remained relatively stable in 2023, with maritime freight costs dropping by over 50%. Essential products like fresh chicken, eggs, oil, and rice showed price stability. Fuel prices remained almost constant throughout the year, benefiting from government subsidies.
• Additionally, the government maintained various measures to mitigate inflation’s impact. These included fuel subsidies and financial support to sectors like electricity, transportation, and food production. In 2022, the government allocated substantial funds to these sectors, positively impacting product prices in 2023.
• Finally, the Central Bank’s financial policies, such as interest rate adjustments, have been effective in curbing inflation, with expectations for the recovery of real wages for the working class.

(Source: Dominican Today)

• China will strive to expand domestic demand, ensure a speedy economic recovery, and promote stable growth, according to an interim report on China's 14th five-year plan published by parliament on Wednesday.
• According to Zheng Shanjie, head of the state economic planning body, the country will "prioritise the restoration and expansion of consumption, stabilise bulk consumption, and promote consumption of services".
• In recent months, the government has unveiled a series of measures to shore up a feeble post-pandemic economic recovery, held back by a property slump, local government debt risks, and slow global growth.
• China will deepen its market-oriented reforms to boost development. The country will also prevent and resolve risks in key areas and co-ordinate the resolution of risks in real estate, local government debt, and small and medium-sized financial institutions.
• Zheng also said China needs to step up its development of high technology to overcome a blockade on technology exports imposed by some countries. “China must accelerate breakthroughs in key core technologies, achieve a high level of scientific and technological self-reliance, and avoid technologies and industries being 'locked' in the low-end and middle-end."

(Source: Reuters)

• According to the S. Department of Energy, the United States has finalized contracts to purchase three million barrels of oil to help replenish the Strategic Petroleum Reserve (SPR) after the largest sale in history last year.
• The department said it bought the oil for delivery to a site in Big Spring, Texas, for an average of $77.31 a barrel, below the average of $95 a barrel that oil sold for in 2022.
• Of note, President Joe Biden's administration conducted sales last year, including a record one of 180Mn barrels, to help control oil prices after Russia, a large crude exporter, invaded Ukraine.
• The U.S. has now purchased about 14Mn barrels for replenishment after last year's sales. About 4Mn barrels are also coming back to the SPR by February as oil companies return oil that had been loaned to them through a swap.
• The Energy Department had already secured the cancellation of 140Mn barrels in congressionally mandated sales from the SPR scheduled from late this year through late 2026. The cancellation "has led to significant progress toward replenishment," the department has said.

(Source: Reuters)

• Thousands of public servants will no longer be required to submit statutory declarations to the Integrity Commission (IC) following parliament’s approval of an order to raise the threshold for submissions from $3.5Mn to $12Mn.
• The Integrity Commission (Total Annual Emoluments Exempt from Statutory Declaration Requirements) Order 2023 was approved following a resolution moved by Minister of Justice, Hon. Delroy Chuck, in the Lower House on December 19.
• The IC recommended the increase in September, citing the anticipated rise in declarations due to the increased salaries of workers under the public-sector compensation review.
• With the increased threshold, an estimated 10,000 public-sector workers would now be required to submit their statutory declarations instead of over 40,000 public-sector workers in December 2021.
• The IC is an anti-corruption body which functions under the Integrity Commission Act. Public servants, at a particular threshold of salary, are required to file their assets, liabilities, and income on an annual basis. This indicates to the Commission that they are not undertaking any activity as a result of their being employed to the public service that is detrimental to the service.

(Source: JIS)