• Jamaica is making strides in meeting its target of generating 50% of its electricity from renewable sources by 2030. Minister of Science, Energy, Telecommunications and Transport, Hon. Daryl Vaz, highlighted the progress being made during a press conference at the Ministry’s office in Kingston on Tuesday, March 18, 2025.
• In October 2018, the Government stated its intention to have 50% or approximately 520 megawatts (MW) of renewable energy in the local energy mix by 2030. This is an increase from the previously declared 30 per cent target, which was announced in April 2017.
• To pursue the renewable energy target, the Government implemented legislation, enabling Jamaica Public Service (JPS) customers with renewable energy generators to sell excess capacity to JPS at wholesale prices. “The Electricity (Net Billing) Regulations, 2022 accelerated distributed renewable energy adoption, with 436 new renewable systems licensed, adding 8.5MW of new capacity,” Minister Vaz noted.
• He further cited the expansion of utility-scale renewable projects that are expected to come on stream soon, further bolstering the renewable energy push. “In November 2024, the Generation Procurement Entity (GPE) awarded 99.83MW of new solar capacity contract to Wigton Energy Limited and Sunterra Energy Jamaica Ltd., supporting the 50% renewable energy target by 2030. Both bidders have obtained their generation licences from the Ministry, and their implementation schedule completion is expected by 2027,” he informed. An additional 220MW of utility-scale renewables with storage will be competitively procured in 2025.
• These projects, along with the JPS’s replacement of 171.5MW of retiring fossil fuel units with renewables, will bring renewables electricity generation close to 48% when the projects are connected to the grid, Minister Vaz said.
• The country’s renewable energy capacity stood at 188 megawatts by December 2024, generating an estimated 481,432MW hours annually, accounting for 10% of the nation’s total electricity production. This is up from 2016 when renewable energy capacity represented seven per cent of total grid generation.
• Furthermore, in 2024, Jamaica moved up eight places in the Bloomberg NEA Climate Scope Report, ranking 10th in Latin America and the Caribbean for renewable energy investment attractiveness.
• Jamaica’s transition to adopting 50% renewables is being guided by the updated Integrated Resource Plan (IRP-2), which was approved by the Cabinet and published in 2024. The Plan prioritises wind, hydro and solar as primary energy sources, and battery energy storage systems (BESS) for grid stability, reliability and efficiency.

(Source: JIS)

• Real GDP growth in the Bahamas is expected to slow from an estimated 1.9% in 2024 to 1.7% in 2025 according to Fitch Solutions, with tourism sector and private consumption expected to be the primary drivers of the expansion. However, high government debt load necessitating fiscal consolidation, as well as solid consumer spending boosting import growth will prevent a faster pace of growth.
• Further, economic growth will hold steady at 1.7% in 2026, as capacity constraints in the tourism sector prevent the sector from more meaningfully driving faster headline real GDP growth.
• The robust tourism sector and steady improvements in living conditions will reduce the risk of social unrest in the Bahamas in 2025, as well as support the position of the incumbent Progressive Liberal Party.
• Aided by its large majority in parliament, the Progressive Liberal Party will be in a strong position to pass bills, implying limited governance risks as well as a good chance of winning the next election, due by September 2026.
• Nevertheless, significant risks remain. Most notably, the government will make limited progress in stamping out corruption and reducing very high levels of violent crime, implying security risks will remain highly elevated in the months ahead.
• Furthermore, the Bahamas remains sensitive to global geopolitical events, both given its reliance on external demand and its sensitivity to any unexpected rise in global commodity prices. An unexpected geopolitical shock could have the ability to push up inflation once again in the Bahamas, denting its economic performance.

(Source: Fitch Connect)

• Guyana President Irfaan Ali is exploring a partnership with Suriname to build a gas-powered industrial hub as he works to fortify his nation’s economy, which was rapidly transformed by oil fortunes in the past decade.
• The nation is seeking a partnership with Suriname for a prospective hub on the north coast of South America that would use natural gas from the countries’ offshore fields, he said in an interview. Ali said he aims “to build regional prosperity” by producing power, fertilizer and aluminium in the Berbice region in eastern Guyana. He spoke on the sidelines of the CERAWeek by S&P Global conference in Houston.
• Exxon Mobil Corp.’s oil discovery in 2015 has transformed Guyana’s economic fortunes, filling the government’s coffers with billions of dollars from oil exports. But it’s also left the nation’s outlook extremely intertwined with the whims of the crude market at a time when an expectant population is looking for a rapid uplift in living standards.
• Ali, who is up for re-election this year, wants to build “resilience” by investing heavily in non-oil sectors, such as agriculture, infrastructure, education and healthcare, he said. The hub would be critical for “energy and food security,” he said as the region seeks to grow its economy.
• “We’re hoping also to discuss with Suriname the integration of their gas into that facility,” Ali said. “That facility would be able to serve both Guyana and Suriname and create the economic spin-off and opportunities for both countries.”

(Source: Rigzone)

• Faced with pressing concerns over the impact tariffs will have on a slowing economy, the rate-setting Federal Open Market Committee kept its key borrowing rate targeted in a range between 4.25%-4.5%, where it has been since December. Markets had been pricing in virtually zero chance of a move at this week’s two-day policy meeting.
• Along with the decision, officials updated their rate and economic projections for this year and through 2027 and altered the pace at which they are reducing bond holdings.
• Despite the uncertain impact of President Donald Trump’s tariffs as well as an ambitious fiscal policy of tax breaks and deregulation, officials said they still see another half percentage point of rate cuts through 2025. The Fed prefers to move in quarter percentage point increments, so that would mean two reductions this year. However, in a news conference, Federal Reserve Chair Jerome Powell said the central bank would be comfortable keeping interest rates elevated if conditions warranted it.
• In its post-meeting statement, the FOMC noted an elevated level of ambiguity surrounding the current climate.
• Powell noted that there had been a “moderation in consumer spending” and anticipates that tariffs could put upward pressure on prices. These trends may have contributed to the committee’s more cautious economic outlook.
• The group downgraded its collective outlook for economic growth and gave a bump higher to its inflation projection. Officials now see the economy accelerating at just a 1.7% pace this year, down 0.4 percentage point from the last projection in December. On inflation, core prices are expected to grow at a 2.8% annual pace, up 0.3 percentage points from the previous estimate.          

(Source: CNBC)

• Japan's government stuck with its cautiously optimistic outlook for the economy; however, U.S. President Donald Trump's trade policies could dampen global growth and higher inflation could hurt consumer spending.
• The government maintained its view on the world's fourth-largest economy, saying it is "recovering moderately" in its monthly report for March, citing strong corporate earnings and wage increases which policymakers hope will boost consumption.
• "There are U.S. trade policies which could have direct and indirect impact on Japan, so we highlighted them as risks to the economy," said an official at the Cabinet Office.
• Referring to Japan's potential trade exposure, the Cabinet Office report said intermediate goods exports including electronic devices account for 60.0% of Japan's goods exports to China. The ratio of intermediate goods such as auto parts in the nation's goods exports to Mexico accounts for 60%, while those to Canada account for nearly 50%, the report said.
• Still, the government retained its assessment on exports, saying they picked up recently for March as Japan's shipments to Asia were on the rise. Higher prices were also risks to the economy as Japan's nationwide overall consumer price index rose 4.0% in January, the highest in two years, boosted by fresh food prices.

(Source: Reuters)

• Approximately 3,000 micro, small and medium-sized enterprises (MSMEs) are poised to benefit from a share of some €9.5Mn in grant-funding support from the European Union (EU). The funds are being provided under the EU’s Digital Transitioning Programme in Jamaica, which was launched in 2023 and aims to increase information and communications technology (ICT) access and use by MSMEs islandwide. This is in keeping with the Government’s ongoing thrust to transition the country to a digital economy.
• Speaking during the official opening of the Jamaica Business Development Corporation (JBDC) Manchester Business Centre in Mandeville recently, Minister of Industry, Investment and Commerce, Senator the Hon. Aubyn Hill, said approximately €1.7Mn of the EU grant is earmarked for the JBDC. He indicated that the provision will fund further digital technology buildout for a targeted 2,700 MSMEs while emphasising the importance of this undertaking and the dividends to be derived.
• Senator Hill noted that the growth recorded by several of Jamaica’s major corporations and enterprises was largely driven by their embracement of technology and encouraged MSMEs to do likewise. He also reminded entrepreneurs that they were operating in an era where digital adoption is an absolute imperative, hence the decision to incorporate agencies such as the JBDC to lend support in driving this thrust.
• Meanwhile, Programme Manager, EU Delegation to Jamaica, Turks & Caicos, The Bahamas, Belize and the Cayman Islands, Marlene Lamonth, said the partnership with Jamaica is a testament to the shared commitment to fostering economic resilience, innovation and inclusive growth for the citizens. “The European Union’s decision to support Jamaica in this journey comes from the recognition of the vital role that MSMEs play in the economy. According to the PIOJ, MSMEs account for 80 per cent of employment in Jamaica, showing that you are the engine of economic growth and the lifeblood of the communities across the country,” Ms Lamonth said.

(Source: JIS)

• On March 17, 2025, GraceKennedy Financial Group Limited (GK) issued an offer to purchase 100% of the issued share capital of Key Insurance Company Limited for J$2.70 per share. The offer is set to open for acceptance on March 24, 2025, and will close on April 22, 2025.
• The acquisition is expected to cost J$403,707,601.80. The company plans to fund the acquisition from internally generated resources of the GraceKennedy Group.
• Key Insurance Company Limited operates as a general insurance company in Jamaica in the Motor and Non-Motor segments. The acquisition would allow for greater reach and market presence for GK, whilst reducing competition in its insurance segment.
• Key Insurance is currently listed on the JSE’s Main Market. Under the Main Market Rules, a company can be delisted if a single shareholder, directly or indirectly, controls more than 80% of a company’s listed shares. GK currently owns approximately 73% of Key's issued shares. As such, if upon completion of the Offer, its ownership stake exceeds the 80% threshold, the delisting would take effect after the bid is finished.
• Additionally, if enough of Key's Shareholders – excluding GK – accept the offer and bring GK’s ownership to at least 90% of the Key’s issued ordinary stock units, GK intends to exercise its rights to compulsorily acquire all remaining shares, regardless of whether the owners have expressly disagreed with or failed to respond to the Offer.
• Since the news release, KEY’s stock price has appreciated by 15.3% to close Tuesday’s trading session at $2.49, leaving an additional upside of 12.5% to the offer price.

(Source: JSE & NCBCM Research)

• On March 13, 2025, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Antigua and Barbuda and endorsed the staff appraisal.
• In concluding the 2025 Article IV consultation, the Executive Directors of the IMF endorsed the staff’s appraisal, as Antigua and Barbuda’s post-pandemic economic expansion continues. Economic activity, boosted by tourism, is estimated to have surpassed pre-pandemic levels, with growth estimated at 4.3%, driven by strong tourism and one-off events (including the 4th International Conference on Small Island Developing States and the T20 Cricket World Cup). As the recovery matures, the IMF projects economic growth to moderate from 3% in 2025 to 2.5% over the medium term.
• The recovery in nominal GDP, along with improved fiscal balances, brought down the public debt from around 100% of GDP in 2020 to 67% in 2024. However, gross financing needs are projected to remain around 10% of GDP in the medium term.
• The fiscal primary balance improved to 4.6% in 2024, aided by indirect tax increases, a broader economic recovery, and one-off factors (e.g., nearly 2% of GDP from an asset forfeiture and unusually low capital spending). The 2025 Budget envisages stronger tax revenues and higher capital spending. The recent improvement in tax revenue is welcomed by the IMF, with further domestic revenue mobilization needed in the medium term to ensure fiscal sustainability.
• Risks are currently tilted to the downside, emanating from elevated uncertainty about the global outlook, a deepening of geoeconomic fragmentation, commodity price volatility, climate-related vulnerabilities and capacity constraints in the construction sector.
• However, upside risks stemming from stronger demand for tourism, improved air connectivity, new cruise port facilities, hosting of special events and the intensification of productivity-enhancing structural reforms, which could support higher medium- and long-term growth are also present.

(Source: International Monetary Fund)

• The Barbados-based Caribbean Development Bank (CDB) is collaborating with the Caribbean Tourism Organisation (CTO) in a new initiative to modernise tourism education and workforce development across the Caribbean.
• The project is also aimed at strengthening the Caribbean's competitiveness in an industry vital to its economic stability. The Tourism Human Capital Development Project, funded through CDB's Caribbean Technological Consultancy Services (CTCS) Network, will allocate about US$400,000 to update training materials, develop workforce management tools, and deliver professional development programmes.
• Titled 'Enhancing the Knowledge and Skills of Tourism Workers in the Caribbean Region', the project aims to bolster the sustainability of the tourism industry, particularly for micro, small, and medium-sized enterprises (MSMEs).
• The CDB said that by modernising educational resources, the initiative will enhance tourism curricula, improve workplace management, and expand training opportunities for employers, workers, and entrepreneurs in CTO member countries. 'These efforts will equip industry professionals with the skills needed to adapt to evolving market demands and ensure the sector's long-term resilience,' said Dona Regis-Prosper, the CTO's secretary-general and chief executive officer.
• 'Strengthening our current and future workforce, from students and educators to MSMEs and industry leaders, is key to the sector's growth. Through targeted training, technical assistance, and enhanced educational resources, this project empowers individuals and businesses to elevate industry standards, improve service delivery and drive sustainable tourism development across the region.'

(Source: Trinidad Express Newspapers)

• U.S. import prices unexpectedly rose in February amid higher costs for consumer goods, which does not bode well for the inflation outlook.
• Import prices increased 0.4% last month, matching January's upwardly revised gain, the Labour Department's Bureau of Labour Statistics said on Tuesday. In the 12 months through February, import prices increased 2.0% after advancing 1.8% in January.
• Government data last week showed better-than-expected consumer and producer price readings in February, though there were firmer readings in the details that go into the calculation of the Personal Consumption Expenditures (PCE) price indexes, the inflation measures tracked by the Federal Reserve for its 2.0% target.
• Imported fuel prices increased 1.7% in February after surging 3.5% in January. Food prices were unchanged after climbing 0.2% in January.
• Excluding fuels and food, import prices shot up 0.4% after being unchanged in January. In the 12 months through February, core import prices rose 1.4%, reflecting earlier dollar strength against the currencies of the United States' main trade partners.

(Source: Reuters)