GDP growth to rise next year to 2% in the Caribbean, 5.0% in the Dominican Republic and 5.8% in Panama.

Economic growth in the Caribbean and Latin America region is “picking up” the IMF has said.

According to a report published this month by the Washington D.C.-based international organization, the economy in the Caribbean is strengthening.

The main drivers of economic growth are reportedly stronger domestic demand, a favorable global environment and rebounding commodity prices.

The IMF’s Regional Economic Outlook for the Western Hemisphere forecasts regional growth rising from 1.3% in 2017 to 2% in 2018 and rising further to 2.8% in 2019.

The IMF believes that Mexico, Central America, and parts of the Caribbean are set to benefit from stronger growth in the USA.

IMF: Caribbean economic growth "picking up"

IMF: Caribbean economic growth “picking up”

Caribbean Economic Growth Outlook Improving

Prospects for growth in the Caribbean region are improving, with economic growth in both the tourism-dependent economies and commodity exporters forecast at 1% to 2% for 2018 and 2019.

The Dominican Republic is once again expected to lead the charge and deliver 5.5% growth in GDP this year, followed by Grenada (3.6%), Antigua (3.5%) and St Kitts & Nevis (3.5%).

Much of the growth is expected to be driven by tourism, construction and real estate.

Mexico Economic Outlook Positive

Output growth in Mexico is expected to rise from 2% in 2017 to 2.3% in 2018.

Very Positive Outlook for Central America

Meanwhile, the outlook for Central America is particularly positive.

Panama is expected to lead the pack with growth rising to 5.6% in 2018 and 5.8% in 2019, followed by Nicaragua achieving 4.7% growth this year and 4.5% next year.

Costa Rica and Belize are also forecast to achieve growth this year and next, with real GDP growth increasing to 3.6% and 2.0% respectively in 2019.