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Shift in Global Supply Chain Trends and Government Push for Economic Diversification in Select Countries Give Way to Transformational Growth
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The economic growth outlook for Central America and the Caribbean is restrained by multiple interrelated factors, mostly due to dependence on the external economic environment. As global growth is poised to contract in 2020, regional growth stands to severely contract as well. In this research, Frost & Sullivan analyzes the macroeconomic outlook for Puerto Rico, Panama, Jamaica, Trinidad and Tobago, Costa Rica, Dominican Republic, Guatemala, Guam, El Salvador, and Honduras through the year 2027. What factors will drive the region’s growth for the next 6 years? What stands to stymie growth prospects during this time? The study provides insights into the regional growth drivers and restraints from 2020 to 2027. This is a forward-looking macroeconomic assessment of elements such as GDP growth, inflation, monetary policy, and unemployment covering the 2016 to 2027 period.Are corruption and drug-related violence still a major deterrent to investments in the region? Will fund misappropriation limit the region's ability to respond to the ongoing health crisis? The study puts in perspective the political backdrop against which economic elements operate. Likewise, the study isolates the key macroeconomic implication of the COVID-19 pandemic for each country. Major global trends such as the decline in tourism-related activities and the rise in global unemployment, especially in North America, severely limit the region’s outlook for the near-term. The study offers an in-depth exploration of the push for diversification across the region and among industries that will consequently see an increase in investment incentives. Based on a detailed assessment of the macroeconomic situation, Frost & Sullivan determines growth opportunities for businesses in this region that could be leveraged. The study highlights the key strategic imperatives that will ensure growth in Central America and the Caribbean.
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