IMF Warns Middle East Conflict To Drive Higher Inflation Across CARICOM

CARIBBEAN – CARICOM economies are set for uneven growth, with projections ranging from just over three percent in tourism-dependent countries like The Bahamas to as high as 19 percent in commodity-exporting nations.

The IMF warns the ongoing Middle East conflict will have negative economic impacts, especially for tourism-driven economies facing high debt and reliance on imported energy.

Regionally, Caribbean growth is forecast at 5.7 percent in 2026, rising to 8.6 percent in 2027. But tourism-based economies are expected to lag, with growth under one percent next year and 2.5 percent in 2027.

In the Bahamas, growth is projected at 2.1 percent in 2026, easing slightly to 1.9 percent the following year.