The World Bank says the Jamaican economy should grow by 2.1-percent this calendar year.
The projection was published today in the World Bank’s first Global Economic Prospects report for 2016.
It’s predicting that Jamaica’s economy will grow by 2.4-percent in 2017 and 2.6-percent in 2018.
The report provides a growth outlook for 25 countries in the Latin American and Caribbean region between 2016 and 2018.
Jamaica is forecast to grow faster than only six of these countries this year.
The Bank notes that 2015 was a difficult year for countries in the Caribbean.
It says output in the region expanded by 3.3-percent, due to greater investments in the Dominican Republic and stronger business and consumer confidence in Jamaica.
It says Caribbean economies are on track to expand by a cumulative 3-percent between 2016 and 2018.
This will be due partly to Caribbean countries’ economic proximity to the United States, robust remittances and solid tourism activity.
The World Bank warns that the Latin American and Caribbean region faces the risk of financial volatility and reduced capital flows sparked by higher US interest rates and higher investor risk aversion.
In addition, the region is threatened by a more severe slump in commodity prices, which would hurt export and government revenues of commodity exporters.
It’s also warning that extreme weather could also set back growth amid suggestions that the El Nino weather pattern will be the strongest on record, hurting agriculture and potentially damaging infrastructure.