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10 March, 2021

Forecast by the Caribbean Development Bank: What will happen to the region's economy in 2021

The Caribbean region's GDP will grow by 3.8% in 2021. That's the forecast from the Caribbean Development Bank. Here's why the bank is confident about GDP growth and how the Caribbean countries plan to rebuild their economies.

Caribbean Development Bank economic forecast for the region's states for 2021
Photo: Adobe Stock

The Caribbean Development Bank is the region's largest financial institution. It supports Caribbean countries, finances government programs and helps reduce poverty in the region.

13.9 percent of the Caribbean region's GDP comes from tourism revenue. In 2019, the industry brought in about $59 billion. The figures come from the German analytics company Statista.

Since the start of the pandemic, the Caribbean has seen 70 percent fewer tourists. Because of this, the region's GDP shrank 12.8 percent over the year.

The World Bank believes the Caribbean economy will grow in 2021 when the borders open. But growth will be less than the 3.8 percent projected by the Caribbean Development Bank. It won't be enough to make up for the losses caused by the pandemic and get the economy back to pre-crisis levels.

2020 result and 2021 GDP growth forecast for the Caribbean region

GDP dynamics in the Caribbean in 2020 and 2021
Source: Caribbean Development Bank

What will help the Caribbean economy recover in 2021

In February 2021, the Caribbean Development Bank presented a recovery plan for the region's economies. Financial support, good public policy and vaccination will help to recover them.

Financial support. The Caribbean Development Bank has already sent 140 million Caribbean dollars, or about $52 million, to support the region. Hospitals, educational institutions and local businesses have received funding. Some of the money has gone to build new infrastructure, social benefits and agricultural development.

Caribbean public policy. Different government policies will help reduce the blow to the economy. Governments will revise the terms of regional assistance programs, expand the production of goods and services and think through tactics to reach the world market.

Government programs will also help stabilize the region's economy and keep it functioning. For example, establish a regular supply of goods during external crises, and support businesses and the population during the crisis.

Gradually resuming exports of goods and opening the borders to tourists will help boost the economy in 2021. But for now, governments are focused on other sectors of the economy. For example, St. Kitts and Nevis is building a solar farm, new clinics and schools, repairing roads and fixing up recreational facilities.

Vaccinations. Caribbean countries have already begun vaccinating against the coronavirus. State governments hope that by the fourth quarter of 2021, foreign tourists will arrive on vacation without restrictions.

The expected increase may not happen - it is unknown how the pandemic situation will unfold. If the number of people sickened increases and borders remain closed, Caribbean GDP will continue to fall. Governments in the region and the Caribbean Development Bank are monitoring the situation and reporting on progress.

How to obtain Caribbean citizenship in 2021

When the Caribbean countries will open for foreigners, the demand for rental tourist real estate will grow. It is in such objects invest participants in citizenship programs: hotels and resort complexes, which bring the owners a share of 3-5% of rental income per year.

As the economy grows, so will the value of government bonds. Under the terms of the citizenship of St. Lucia investor have the right to redeem bonds in 5 years and return the money invested with interest.

A passport of the Caribbean country is possible by investments from $100,000. Registration takes from 2 months. Governments offer investors several options to choose from.

CountryInvestmentsInvestment option
DominicaFrom 100 000 $Non - refundable fee
Purchase of real estate
St LuciaFrom 100 000 $Non - refundable fee
Purchase of real estate
Buying government bonds
Investing in a local business
Antigua and BarbudaFrom 100 000 $Non - refundable fee
Purchase of real estate
St Kitts and NevisFrom 150 000 $Non - refundable fee
Purchase of real estate
GrenadaFrom 150 000 $Non - refundable fee
Purchase of real estate

Investors travel freely with a Caribbean passport to more than 140 countries, including Schengen, Great Britain and Hong Kong. Investors are entitled to stay in the European Union for 90 days per half-year. Citizens of Grenada travel to China without a visa for 30 days a year.

Immigrant Invest is a licensed agent for Caribbean citizenship programs. If you want to obtain a Caribbean passport and travel freely around the world, seek advice from the experts at Immigrant Invest Programs.

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Forecast by the Caribbean Development Bank: What will happen to the region's economy in 2021