• Tourism Minister David Collado underscored the vital role of tourism in the Dominican Republic’s economy, noting that the sector accounts for over 15% of the national GDP.
• He described tourism as the pillar of economic stability, citing revenues of more than US$10.50Bn in 2024, which helped maintain a stable exchange rate.
• Diversification of the tourism offer has been one of the driving forces behind this growth: as well as beaches and sunshine, the Dominican Republic has developed ecotourism in Jarabacoa and Bahía de las Águilas, boosted cultural tourism in Santo Domingo, and stimulated medical tourism.
• Collado highlighted that from 2022 to 2024, over 40% of the country’s economic growth was driven by tourism, a figure confirmed by the Central Bank governor. He added that in many countries, tourism would be regarded as the main industry, and in the Dominican Republic, it has proven to be indispensable to national development.

(Sources: Dominican Today)

• U.S. GDP shrank by an annualised 0.2% in the first quarter of 2025, according to revised data that confirmed the first contraction since 2022, as Donald Trump’s trade war ripples across the world’s biggest economy.
• The Bureau of Economic Analysis revised its reading slightly upward from the initial estimate of a 0.3% contraction released last month. However, this adjustment was not sufficient to shift the economy into positive growth for the period, as consumer spending declined.
• The decline in GDP, in contrast to a 2.4% growth in the final quarter of 2024, was primarily driven by a significant increase in imports. Companies hurried to acquire foreign-made goods before the U.S. president's "liberation day" tariff announcement, which took place in early April.
• Although investments increased according to the revised statistics, it was largely offset by a slowdown in consumer spending growth, particularly in services and housing, as Americans contend with higher prices and uncertainty stemming from the trade war.
• Of note, U.S. consumer prices have risen more than 25% since 2019, before the COVID-19 pandemic, which has weighed on consumer sentiment reports and prompted anxious shoppers to cut back.
• Trump’s trade war is expected to be a drag on the U.S. economy during the second half of the year. The IMF in April slashed its outlook for U.S. GDP growth this year to 1.8%, from 2.7% in January.  That said, a U.S. court ruled this week that Trump’s “liberation day” tariffs were illegal, in a decision that could throw the president’s global trade policy into disarray. The White House said on Thursday, May 29, 2025, it would fight the ruling.

(Source: Financial Times)

• President Donald Trump's trade war has cost companies more than US$34Bn in lost sales and higher costs, according to a Reuters analysis of corporate disclosures, a toll that is expected to rise as ongoing uncertainty over tariffs paralyses decision-making at some of the world's largest companies.
• Across the United States, Asia and Europe, companies including Apple, Ford, Porsche, and Sony have pulled or slashed their profit forecasts, and an overwhelming majority say the erratic nature of Trump's trade policies has made it impossible to accurately estimate costs. Reuters reviewed company statements, regulatory filings, conference and media call transcripts to pull together for the first time a snapshot of the tariff cost so far for global businesses.
• The US$34Bn is a sum of estimates from 32 companies in the S&P 500, three companies from Europe's STOXX 600 and 21 companies in Japan's Nikkei 225 indices. Economists say the cost to businesses will likely be multiple times what companies have so far disclosed.
• "You can double or triple your tally and we'd still say ... the magnitude is bound to be far greater than most people realise," said Jeffrey Sonnenfeld, professor at the Yale School of Management. The ripple effects could be worse, he added, citing the potential for lower spending from consumers and businesses, and higher inflation expectations.
• While a recent pause in Sino-US trade hostilities has offered some relief and Trump has backed down from tariff threats against Europe, it is still not clear what the final trade deals will look like. A U.S. trade court on Wednesday, May 28, 2025, blocked Trump's tariffs from going into effect. In this environment, strategists say companies will look to strengthen supply chains, boost near-shoring efforts, and prioritise new markets - all of which will push up costs.

(Source: Reuters)

• Business interests and other stakeholders in Ocho Rios, St. Ann, are upbeat following Tourism Minister, Hon. Edmund Bartlett’s announcement regarding the reopening of the town’s main cruise pier. Closed since February 2024 due to severe flood damage, the pier is now expected to resume operations before the start of the cruise season at the end of the year.
• This projection has fueled optimism among local business interests that depend on cruise tourism and the vibrant activities that flourish when the port is operational. Stakeholders across various sectors, including craft traders, transport operators, duty-free merchants, souvenir shop owners and attraction operators, have welcomed the news, emphasising the pier’s vital role in their livelihoods and the local economy.
• During a recent meeting in Ocho Rios, Minister Bartlett expressed confidence in the port’s recovery, stating that there is “every indication” the main pier will be operational in time for the upcoming cruise season. He further noted that the facility will join its nearby sister port, Reynolds Pier, as fully functional, allowing Ocho Rios to once again welcome large mega vessels carrying thousands of visitors.
• Local business leaders, who have faced considerable hardships during the pier’s closure, have welcomed the news with enthusiasm. They are confident that its reopening will revitalise their businesses and restore stability after a difficult period of reduced foot traffic and declining revenue.

(Source: JIS)

• The Government has allocated J$2.0Bn to the Development Bank of Jamaica (DBJ) to support micro, small, and medium-sized enterprises (MSMEs), with a portion specifically earmarked for agriculture.
• Minister of Agriculture, Fisheries and Mining, Hon. Floyd Green, made the disclosure during his 2025/26 Sectoral Debate presentation in the House of Representatives on Tuesday (May 27). He informed that the Ministry is now in discussions with the DBJ to finalise a Memorandum of Understanding (MOU) with the Agro-Investment Corporation (AIC), aimed at facilitating direct lending to farmers and agri-entrepreneurs.
• “What has happened is, even when the DBJ provides the resources, when they go through the approved financial institutions, by the time it reaches to the farmers, the interest is so high that it proves prohibitive. We are establishing a model that we can lend directly to farmers,” Minister Green stated.
• Additionally, through an MOU between the DBJ, Rural Agricultural Development Authority (RADA) and Jamaica Agricultural Society (JAS), the Ministry has launched the Loan Ready Training Programme.
• The initiative is equipping more than 450 agricultural stakeholders, including women and youth, with financial literacy and business planning skills, preparing them to meet financing requirements.
• The DBJ is also offering several initiatives to support farmers, including the Credit Enhancement Facility, which provides financing of up to $30 million for those without traditional collateral. Additionally, the Poultry Loan Product is unlocking more than $1 billion through contract farming and cooperative partnerships, while the Strawberry Cluster Project in Mandeville has received a $43 million investment in high-tech, climate-smart production.

(Source: JIS)

• Governments across Latin America and the Caribbean collected less taxes in 2023, largely because their economies slowed down and global prices for oil, gas, and minerals fell. That’s the big takeaway from a new report released at the UN-ECLAC Regional Fiscal Seminar in Santiago, Chile.
• According to the Revenue Statistics in Latin America and the Caribbean 2025 report, tax revenues in the region averaged 21.3% of GDP in 2023. That’s a small drop from 21.5% the year before and just below the pre-pandemic level of 21.4% in 2019.
• In other words, governments in the region, including Caribbean nations are collecting less money through taxes compared to the size of their economies. That could make it tougher to fund things like health care, schools, and infrastructure.
• The report covers 26 countries. Fourteen of them, including some Caribbean states, saw their tax-to-GDP ratios fall in 2023. The sharpest declines were in Chile and Peru, due mostly to a drop in income tax collections. Tax-to-GDP ratios varied widely across the region. Guyana had the lowest at 11.6%, while Brazil had the highest at 32.0%. By comparison, the average among wealthier countries in the OECD group was 33.9%.
• A closer look shows that income taxes, especially from countries rich in oil and minerals, fell slightly, while payroll taxes (like social security) ticked up a bit. Taxes on goods and services remained steady.
• For the first time, the report also included non-tax revenue data—money governments earn from things like state-owned companies, land rentals, interest, and public service fees. Across 22 countries, these revenues averaged 3.1% of GDP. Cuba stood out with the highest share at 11.6%, while Peru had the lowest at 0.4%.

(Source: Caribbean National Weekly)

• Heritage Petroleum announced that it has successfully spud^[1] Well FR1831 located in Forest Reserve.
• Well FR 1831 will be drilled to a depth of circa 6,000 ft measured depth using Well Site Log (WSL) Rig 80, with a planned drill time of 15 days. Initial production is expected to be 56 barrels of oil per day (bopd).
• This marks the 5th well in the company’s 2025 land drilling campaign and represents a continued commitment to the development of its onshore assets. The well builds on the success of the FR1819 well, which was drilled in 2022, which targeted the upper and middle cruse sands in the Forest Reserve Field.
• The drilling of FR 1831 comes on the heels of the announcement of the arrival of the offshore drilling rig EOD264 and underscores Heritage’s drive to meet its Recovery Plan Deliverables.
• Heritage noted that as at September 30, 2024, since its inception, it has contributed $14.75Bn to the Government in royalties, levies, and other taxes. It also noted that capital expenditure increased by 23 percent to $1.08Bn in 2024 (2023: $880Mn), reflecting continued investment in production, asset integrity, developmental drilling, infrastructure and technology.

(Sources: Energy Chamber of Trinidad & Tobago and Trinidad and Tobago Guardian)

^[1] In oil and gas drilling, "spudding a well" means to begin drilling operations.

• U.S. Federal Reserve (Fed) officials at their last meeting acknowledged they could face "difficult tradeoffs" in coming months in the form of rising inflation alongside rising unemployment. This outlook is buttressed by concerns about financial market volatility with Fed staff warnings of increasing recession risk, according to minutes of the May 6-7 session.
• The foreboding outlook has likely shifted since then following President Donald Trump's decision just a week after the meeting to postpone the severe import tariffs, including a 145% levy on goods from China, that had forced up bond yields, driven down stock prices, and led to widening predictions of a U.S. economic downturn.
• However, the minutes released on Wednesday, May 28, 2025, still showed Fed policymakers and staff engaged in a consequential discussion of the likely fallout from Trump administration policies that remain in flux, with even the highest tariffs on hold but not yet withdrawn altogether.
• Officials at the meeting noted that volatility in bond markets in the weeks before "warranted monitoring" as a possible risk to financial stability and noted that a change in the U.S. dollar's safe-haven status, along with rising Treasury bond yields, could have long-lasting implications for the economy.
• Fed officials continue to cite the possibility of inflation and unemployment rising in tandem as a risk that would leave them forced to decide whether to prioritise fighting inflation with tighter monetary policy or cutting interest rates to support growth and employment.
• The Fed next meets on June 17-18, when the central bank will release new projections from policymakers about their outlook for inflation, employment and economic growth in coming months and years, and the projected interest rate they feel would be appropriate. At their March meeting, the median projection among policymakers was for two quarter-point interest rate cuts by the end of 2025.

(Source: Reuters)

• In a move towards strengthening international security, Canadian Prime Minister Mark Carney has expressed his intention for Canada to join a pivotal European initiative aimed at bolstering defensive capabilities. Speaking to CBC on Tuesday, May 27, 2025, Carney said he hoped Canada would sign on to ReArm Europe - a plan to dramatically increase defence spending on the continent in the next five years - in a bid to reduce reliance on the US.
• "Seventy-five cents of every (Canadian) dollar of capital spending for defence goes to the United States. That's not smart," Carney told the public broadcaster. His remarks come amid tension with the US after threats from President Donald Trump, though Carney has also previously said he is open to joining a missile defence project proposed by Trump.
• A day after Carney's remarks, Canada's defence minister, David McGuinty, told a military trade show that his country wanted to quickly boost defence capacity in the face of growing global threats. McGuinty said there would be a future focus on the Arctic, where competing nations were challenging Canada's sovereignty.
• Defence also featured in this week’s Speech from the Throne, an event that opened the new parliament and outlined the sitting government's agenda. The address was read in person by King Charles III, Canada's monarch, as part of a royal visit that was designed to highlight Canada's identity and sovereignty. The speech contained commitments to "rebuilding, rearming, and reinvesting" in Canada's military.
• The remarks by Canadian officials come after North Atlantic Treaty Organisation (NATO) Secretary General Mark Rutte said he expected members of his Western defence alliance, including Canada, to grow their annual defence spending to a level equivalent to 5% of each nation's GDP, up from 2% previously.

(Source: BBC News)

• For the first quarter ended March 31, 2025, Kingston Wharves Limited (KWL) reported a 6.7% year-over-year increase in net profit attributable to shareholders, to J$796.9Mn. The improved bottom line was supported by robust topline growth.
• Total revenue for Q1 2025 rose 9.6% year-over-year to J$2.82Bn, compared to J$2.57Bn in the prior year, driven primarily by strong gains in the Terminal Operations and Logistics Services Divisions.
• The Terminal Operations Division delivered an impressive performance, generating J$2.1Bn in revenues, an increase of 18% or J$316Mn relative to Q1 2024. Operating profit for the division also rose by 18% to J$596Mn, buoyed by a notable increase in transshipment activities, a strategic priority for KWL.
• The Logistics Services Division saw more moderate growth; it recorded J$1.0Bn in revenues, representing a modest 4% year-over-year increase. However, operating profit declined by 33%, falling to J$250Mn from J$375Mn in Q1 2024. The decline reflects, in part, the reallocation of certain head office charges to the division to enhance visibility into its true operating performance and to promote cost discipline. Additionally, a softening in Less-than-Container Load (LCL) and logistics activities, tied to wider economic pressures in Jamaica and key trading partners, weighed on profitability.
• Despite the drag from Logistics Services, consolidated operating profit climbed 6.7% to J$796.5Mn. However, this was tempered by a sharp rise in finance costs, which more than doubled to J$78.3Mn for the quarter. The rise in KWL’s finance costs for Q1 was likely due to higher interest expenses, supported by a 46.5% increase in short-term debt between the first quarters of 2024 and 2025.
• Looking ahead, KWL remains strategically well-positioned. The company continues to partner with local freight forwarders and global operators to ensure reliable, flexible service, while pursuing new growth opportunities. Its diversified, multi-purpose business model helps buffer the impact of cyclical shifts in cargo volumes, and recent investments in cargo-handling infrastructure and digital systems are improving efficiency and service quality.
• KWL’s stock has declined 8.8% year-to-date, closing at J$30.00 at Tuesday. At this price, the stock trades at a price-to-earnings (P/E) ratio of 15.9x, which is higher than the Main Market Energy, Industrials and Materials Sector’s average of 15.6x.

(Sources: Kingston Wharves Limited & NCBCM Research Limited)