Preliminary overview of Caribbean Economies 2005

The Preliminary Overview provides an analysis of the economic performance of Selected Caribbean Economies for 2005. In 2005, the majority of Caribbean countries registered a decline in their rate of economic growth with respect to the previous year. The highest rates of growth were recorded by Grenada, Saint Lucia, and Trinidad and Tobago (9.2%, 7.9% and 7.0%, respectively) followed by St Kitts and Nevis and Suriname (5% for both). Five other countries registered moderate growth rates averaging between 2% and 3%. The lowest growth rates were recorded by Jamaica and Guyana (1.4% and -2.9%, respectively).The growth performance was mainly supported by the continued strength of external demand and low interest rates that prevailed throughout most of the year and, to a lesser extent, by the expansion of internal demand. The growth prospects were however overshadowed for most Caribbean countries by the increase in oil prices, adverse climatic conditions, and more specifically natural disasters. The hike in international interest rates that occurred in the latter part of the year was also a contributing factor.