Tiny Caribbean countries and their role in global economics

Image source: LOM Financial

Just by observing the recent trends in the financial markets and the global economy as a whole, experts find an optimistic future especially for countries located in the Latin American and Caribbean regions. In fact, according to the World Economic Forum’s latest projections for some parts of the Caribbean and Latin America (except for Venezuela), the economic performance of these neighboring countries have greatly determined and contributed to one another’s growth potential in the next two years.

The Caribbean, most especially, is benefiting from the sturdier growth in the United States, resulting in the former’s economic prospects to generally improve. Furthermore, analysts suggest that the region will see these results as early as this year and in 2019.

However, the more important question to ask is what does the growth in the Caribbean region mean to the global economics? In order to reduce their dependency of larger countries and maintain their small economies, it became a home to the top offshore investment and financial centers in the world such as the Cayman Islands and the Bahamas – and this factor made the Caribbean a strong player in world economy.

Tax-efficient jurisdictions, especially the ones found in the Caribbean region, have played an important role for governments, developing economies, corporations and even private individuals by providing access to capital, privacy, and protection of assets, and most importantly, financial guidance on wealth management and protection.

While countries around the Caribbean have a level of vulnerability caused by natural disasters such as the one that brought massively devastating hurricanes in 2017 and 2004, its economic policies and trade openness is a good example of how strong relationships on international and regional trade can create opportunities even for small and diverse economies to prosper.