The Caribbean Development Bank (CDB) is calling on regional governments and development partners to take decisive steps to confront the persistent challenges of sluggish growth and high public debt across the region.
Speaking at the 2nd Caribbean Debt Forum, Ian Durant, Acting Vice-President of Finance and Corporate Services at the Bank, outlined a roadmap for achieving inclusive and sustainable development. His recommendations focused on improving competitiveness, maintaining macroeconomic stability, and building fiscal buffers to address the region’s longstanding debt overhang.
Drawing from recent macroeconomic data, Durant underscored the Caribbean’s persistently low growth trajectory—driven by structural challenges such as declining productivity, narrow export bases, and increasing vulnerability to climate shocks. He warned that elevated debt levels continue to limit fiscal flexibility and hinder long-term investment in development.
“The Caribbean’s growth trajectory has been constrained by high export concentration and deep-rooted structural barriers, leading to low and volatile growth,” Durant said. “To unlock our full potential, we must build competitive, diversified economies that can withstand external shocks and deliver inclusive growth.”
While regional debt ratios have improved since the pandemic, eight of the Bank’s Borrowing Member Countries (BMCs) still exceed the 60% debt-to-GDP threshold. Durant cautioned that rising global interest rates and slowing GDP growth could erode these gains, making debt sustainability a critical development priority.
“Debt sustainability is not just a fiscal issue—it is a development imperative,” he stressed. “CDB remains committed to helping our member countries through innovative financing, technical assistance, and policy dialogue to strengthen resilience and long-term prosperity.”
Durant also pointed to the Caribbean Single Market and Economy (CSME) as a key platform for regional growth, but noted that outdated port infrastructure, limited shipping connectivity, and high logistics costs continue to limit its potential. A recent CDB logistics study found persistent inefficiencies—including paper-based systems, outdated fee structures, and limited operating hours—that hinder trade and regional integration.
To overcome these barriers, Durant urged countries to enhance entrepreneurial ecosystems and invest in climate-resilient infrastructure, regulatory reform, and expanded access to concessional financing. He also called for stronger regional collaboration and strategic partnerships to advance innovation, digital transformation, and inclusive growth.
The CDB, he affirmed, remains a steadfast partner in supporting the region’s development agenda and helping its members navigate complex global and economic challenges.
