Major Economies of the Caribbean

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Located acold distant from the hustle and bustle of galore of the busiest cities of the world, the Caribbean portion is known arsenic 1 of the world's apical abrogation destinations. With arsenic galore arsenic 43 cardinal residents and much than 7,000 idiosyncratic islands (and 30 territories, including sovereign states, overseas departments, and dependencies), the Caribbean archipelago includes immoderate precise dynamic economies.

Key Takeaways

  • With arsenic galore arsenic 43 cardinal residents and much than 7,000 idiosyncratic islands (and 30 territories, including sovereign states, overseas departments, and dependencies), the Caribbean archipelago includes immoderate precise dynamic economies.
  • The twin-island authorities of Trinidad and Tobago has fueled its economical maturation with export revenues from lipid and gas.
  • Jamaica is 1 of the world’s starring producers of bauxite.
  • The Dominican Republic and the Cayman Islands are well-known offshore taxation havens for multinational corporations and billion-dollar fiscal work companies.

Trinidad and Tobago

The twin-island nations of Trinidad and Tobago person a comparatively precocious gross home merchandise (GDP) per capita compared to different territories successful the region. The Republic of Trinidad and Tobago is considered to beryllium a high-income system by the World Bank. A high-income system is defined by the World Bank as a federation with a gross nationalist income per capita of $12,696 oregon more.

In 2011, the Organization for Economic Co-operation and Development (OECD) removed Trinidad and Tobago from its database of processing countries.

According to the CIA World Factbook, Trinidad and Tobago’s existent GDP is $36.514 (2019 estimate). Trinidad is highly babelike on petrochemical and liquefied earthy state exports arsenic a effect of its ample lipid and earthy state reserves, and the Republic has had a robust economy over the past decade (primarily due to the fact that of accelerated maturation successful its accumulation of earthy state and the country's substantial exports of petrochemicals).

As a subordinate of the Caribbean Community and Common Market (CARICOM), Trinidad benefits from commercialized alliances among different Caribbean states. CARICOM is simply a radical of 20 processing countries that enactment unneurotic to signifier policies for the portion and encourages economic growth and trade.

Jamaica

For galore years, Jamaica was mostly known for its reggae music, crystal wide beaches, and a chiseled accent. However, the Caribbean island’s fiscal manufacture made headlines successful 2015, erstwhile Bloomberg reported that the Jamaica Stock Exchange (JSE) was the world’s best-performing banal marketplace for 2015.

While the S&P 500 reported antagonistic returns successful 2015, the JSE marketplace scale roseate by 97%. This came arsenic a effect of overseas acquisitions and a recovering economy.

The Jamaican system is powered by export revenues from its agriculture and mining industries. In summation to being 1 of the largest producers of bauxite (a sedimentary stone that's the main commercialized ore of aluminum), Jamaica besides exports alcoholic preps for beverages, cassava, earthy sugar, and earthy java beans. Jamaica is besides a subordinate of CARICOM, a communal marketplace successful the Caribbean.

In caller years, the authorities of Jamaica has been moving connected economical reforms that person gained enactment from the International Monetary Fund (IMF), and the World Bank.

Cayman Islands

Many radical privation that they could debar paying income taxes without getting into occupation with the law—the residents of the Cayman Islands are afforded the luxury of doing so. Known arsenic 1 of the world’s apical tax havens, the Cayman Islands imposes a 0% taxation complaint connected income earned by individuals.

There are besides nary firm taxes, nary capital gains, and nary acquisition oregon spot taxes successful the Cayman Islands, though this whitethorn change. In 2021, determination person been projected planetary reforms that would interaction the statuses of each taxation havens, including the Cayman Islands. (After years of negotiation, the G7 has travel to a deal—which was presented to G20 countries successful July 2021—that would necessitate companies to look a 20% taxation connected earnings, supra a 10% margin, successful countries wherever its products oregon services are consumed. Another portion of the program would acceptable a minimum planetary minimum firm taxation complaint of 15%.)

As a effect of its tax-neutral status, the Cayman Islands has attracted galore affluent radical and corporations to incorporated concern entities successful its jurisdiction. The superior root of the government’s gross comes from indirect taxes, specified arsenic value-added taxation (VAT) and customs duties. Like astir taxation havens, the bulk of the instrumentality firms, accountants, and institution managers successful the Cayman Islands absorption their efforts connected serving the fiscal services industry.

The authorities of the Cayman Islands besides makes a important magnitude of wealth from fees associated with registering and renewing offshore companies and hedge funds.

Unlike Jamaica and Trinidad and Tobago, the Cayman Islands usage a fixed speech complaint regime.

Dominican Republic

The Dominican Republic has 1 of the largest GDPs among the antithetic Caribbean territories. The Dominican Republic's existent GDP is $197.735 cardinal (2019 est.). Strong trading relationships and ample remittance payments helped to lend to the enlargement of the island's economy. In fact, remittances service arsenic 1 of the island’s largest sources of overseas exchange.

In summation to being 1 of the Caribbean’s largest producers and exporters of sugarcane, the Dominican Republic exports cigars, sweetener cane, refined petroleum, and bananas. Some of the island’s cardinal trading partners are the United States, China, and Haiti. 

The Bottom Line

Much much than a vacation destination, the Caribbean portion consists of tiny land economies that are large players successful a wide scope of global industries. The twin-island authorities of Trinidad and Tobago, for example, has fueled its economical maturation with export revenues from lipid and gas. On the different hand, Jamaica is 1 of the world’s starring producers of bauxite. The Dominican Republic and the Cayman Islands are well-known offshore taxation havens for multinational corporations and billion-dollar fiscal work companies.

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