The Caribbean Development Bank (CDB) is predicting the economies of its borrowing member countries will expand by around 2 per cent in 2019, a slight rise from last year’s performance which saw average growth of 1.9 per cent across the region.

The fastest growing Caribbean economies in 2018 were Antigua and Barbuda, Grenada and Guyana.

CDB president Dr William Warren Smith said: “The current international economic environment is characterised by escalating trade tensions, volatile commodity markets and uncertainty with respect to both Brexit and US trade. Despite projections of deceleration in global economic activity, the 2019 economic outlook for our borrowing members is a positive one.”

The CDB believes growth in the coming year will be driven by expansion in the Caribbean’s major industries of tourism and construction, as well as the gold and oil sectors.

In 2018, the bank dispersed $280m across the region to fund initiatives in various fields including energy, education, climate resilience and disaster recovery.

In December, The Bahamas received $14.5m for a project to convert streetlights into energy-efficient LED lighting. The initiative is expected to save the government around $3m a year and is part of The Bahamas’ 2018-2022 country strategy. This involves a $106m programme of assistance which will see the CDB support the country as it focuses on environmental protection, infrastructure enhancement, social development and improved governance.

Delivering its annual report yesterday, the CDB cautioned that member states must focus on climate resilience and effective fiscal policy if they are to sustain growth.

Dr Smith said: “It is clear that the challenges our countries face are becoming more complex. This will require change and transformation. We have begun to adapt and to ring the changes and we are building this momentum.”