Caribbean Insight
The Caribbean Council's Flagship Fortnightly Publication
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Lead Articles Featured on Caribbean Insight
Friday 27 February 2026
Prime Minister Mia Mottley has unveiled a reconfigured Cabinet days after her Barbados Labour Party (BLP) secured a landslide election victory, taking all 30 parliamentary seats.
Ministers and some senators were sworn in at CARIFESTA House, before the country’s recently installed second President, Jeffrey Bostic, marking the start of the administration’s third consecutive term in office.
At the swearing in of the new government, Mottley attempted to pre-empt criticism; asserting that her team is designed for delivery, accountability and performance in a changing domestic and global environment.
Among the most closely watched appointments is the return of former Democratic Labour Party (DLP) heavyweight Chris Sinckler, whom Mottley has until recently heavily criticised as being one of the architects of Barbados’ “lost decade”.
Sinckler joins the government as a senator and senior minister of foreign affairs and foreign trade. Fellow former DLP minister Michael Lashley also re-enters Cabinet as minister of legal affairs and criminal justice. Their inclusion has fuelled fierce debate among BLP faithful, but underscores Mottley’s willingness to draw talent across party lines.
Defending the expanded and reshaped Cabinet, Mottley said the configuration was intentional and execution-focused. “The Cabinet that is being sworn in today is not just a list of names. It is a structure that has been deliberately balanced, carefully chosen and repurposed to face the current realities of our moment today with strategic focus,” she told the swearing-in ceremony.
Key portfolios were elevated to reflect that priority. Mottley linked a new investment portfolio to economic resilience. “If you ask me why we have a dedicated minister for investment, public and private, it is because our tax base, while our tax collection is doing well, our tax base remains tenuous, and our progress depends on our ability to continue to drive investment, local and foreign investment,” she argued.
The Cabinet retains Santia Bradshaw as Deputy Prime Minister, now Minister of Environment, National Beautification and Fisheries, and leader of government business in the House of Assembly. Kerrie Symmonds takes Energy, Business Development and Commerce as senior minister coordinating the productive sector, while Kirk Humphrey is promoted to Transport and Works and senior minister coordinating infrastructure. Ian Gooding-Edghill and Chad Blackman return as Minister of Tourism and International Transport and Education, respectively.
Ryan Straughn is elevated to full Finance Minister replacing Prime Minister Mottley, Kay McConney assumes public service and talent development, and Lisa Cummins is appointed Minister of Health and Wellness and leader of government business in the Senate.
Mottley acknowledged public frustration with state services, arguing that citizens judge government by lived experience rather than policy documents. “One of the biggest frustrations is often not policy in the governance of this country. It is about the pace of execution,” she said, adding that people care about “whether the bus is coming on time or not… whether the lights stay on, whether their water is running and clear and not brown.”
Noted Caribbean political scientist Peter Wickham described the Cabinet as a sign of political maturity. “I think the big surprise to a lot of people was both Chris and Lashley’s inclusion,” he said, while noting that Sinckler’s foreign affairs experience could prove valuable. On Cabinet size, Wickham observed that it “is actually the smallest Cabinet that she has had,” suggesting consolidation and confidence in leadership.
Beyond Cabinet formation, President Bostic also moved to appoint Senate seats amid the absence of a parliamentary opposition, appointing Ryan Walters and Karina Goodridge as opposition senators after what he described as extensive deliberation.
A further point of contention surrounding the Senate appointments was the DLP’s decision to submit only two names, despite President Bostic formally requesting four nominations. Under normal circumstances, the opposition leader advises the President on Senate appointments. However, since the governing party holds all House of Assembly seats, there was no opposition leader to exercise that role.
The new administration moved quickly to set its legislative agenda, tabling several bills aimed at governance reform and institutional strengthening. Chief among them was a Constitution (Amendment) Bill on party defections, introduced by Prime Minister Mottley, which would require Members of Parliament elected on a party ticket to vacate their seats if they formally change political allegiance.
With ministers sworn in, legislative priorities progressing, and economic reforms promised, the new government has signalled that its third term will focus less on stabilisation and more on performance, productivity and execution across the state.
Photo Credit: https://www.gov.bb/Government/prime-minister
Source: Caribbean Insight – Volume 48, Issue 4
Friday 13 February 2026
Guyana has presented its largest national budget on record, with Finance Minister Ashni Singh tabling a GY$1.558tn (US$7.48bn) fiscal package in parliament.
Themed “Putting People First,” Budget 2026 is the first by the ruling People’s Progressive Party/Civic since its landslide victory in the September 2025 elections, and is 12.7% larger than the previous year’s budget.
In a six-hour presentation to the National Assembly, Singh said the budget is designed to ensure Guyana’s rapid growth delivers tangible benefits. “Budget 2026 is designed to translate sustained economic expansion into tangible investments that improve livelihoods, strengthen communities, and modernise national infrastructure,” he said.
Guyana’s economy grew by 19.3% in 2025, while the non-oil economy expanded by 14.3% across agriculture, mining, construction, manufacturing and services.
Housing, education and agriculture dominate the expenditure framework. Housing programmes are allocated roughly US$763mn, supporting expanded access to affordable homes, infrastructure upgrades and subsidies for home improvement.
Education receives about US$881mn, earmarked for new and rehabilitated schools, teacher training, and skills development aligned with a modern, diversified economy. Agriculture and agro-processing are allocated around US$544mn, aimed at strengthening food security, boosting rural livelihoods and supporting value-added production.Infrastructure investment remains one of the largest spending items, with US$941mn set aside for roads, bridges and transport networks to improve national connectivity and support commerce. The energy sector will receive about US$573mn, focused on lowering electricity costs, improving reliability and supporting industrial growth.
Singh said these allocations are not routine spending items, describing them as “investments that build the foundation of a more prosperous and secure society.”
Social protection also features prominently. Around US$376mn is earmarked for children, women, the elderly and vulnerable groups, alongside US$36mn for Amerindian community development. Measures to boost household incomes include higher old-age pensions, increased public assistance, and the continuation of the National Cash Grant, which provides a cash transfer to every adult Guyanese.
Tax relief measures were another headline announcement. Singh confirmed that the income tax threshold will rise to GY$140,000 (US$671) per month, removing 5,000 people from the tax net. “This will result in the removal of 5,000 persons from the tax net whilst adding over GY$2bn [~US$9.6mn] in disposable income to workers,” he said.
Additional measures include the removal of net property tax on individuals and the elimination of VAT on selected locally produced goods, vehicles below 1500cc, and certain hybrid vehicles. The government also outlined steps to reduce the cost of vehicle ownership by removing duties and taxes on outboard engines and ATVs.
Oil revenues continue to underpin the fiscal framework. Budget documents project US$2.4bn in profit oil and US$375mn in royalties from the ExxonMobil-operated Stabroek Block in 2026. Withdrawals from the Natural Resource Fund are projected to increase steadily, climbing from US$2.37bn this year to US$2.62bn in 2027, then to US$2.92bn in 2028, reaching US$4.33bn by 2029. However, the fund’s balance is forecast to grow to US$11.7bn over the same period, reflecting surging petroleum revenues.
The opposition has strongly criticised the budget. Opposition Leader Azruddin Mohamed argued that size alone does not guarantee improved welfare. “The Government wants the nation to believe that because the budget is the largest in our history it will automatically produce the best outcomes, but bigger budgets do not equal better lives,” he said, accusing the administration of failing to adequately address cost-of-living pressures.
Singh rejected those criticisms, insisting the fiscal package is carefully targeted and growth-oriented. “These are not expenditures of convenience, they are investments in productivity, resilience, and a better Guyana, a Guyana where all can prosper, and a Guyana where ability and effort are rewarded,” he told Parliament.As Guyana approaches its 60th independence anniversary, Budget 2026 marks an ambitious, oil-backed push to continuously reshape the economy—one the government insists will put people first, but which will face intense scrutiny as implementation unfolds.
Source: Caribbean Insight – Volume 48, Issue 3
30 January 2026
In a major financial manoeuvre aimed at refinancing maturing debt and strengthening its fiscal outlook, the Government of Trinidad and Tobago has successfully issued a US$1bn 10-year senior unsecured sovereign bond.
The transaction, which matures on 28 January 2036, and carries a 6.50% coupon, was oversubscribed by 2.5 times, drawing over US$2.4bn in demand from international investors.
The bond, arranged by JP Morgan and Bank of America, will pay interest semi-annually and is intended primarily to refinance a US$1bn bond due in August 2026, originally issued under former Finance Minister Colm Imbert in 2016.
The remainder of the proceeds will be used to support general budgetary needs. The new issuance extends the country’s external debt maturity profile, increasing the average maturity from 4.1 to 6.3 years.
Finance Minister Davendranath Tancoo hailed the issuance as a major success, both in fiscal terms and as a statement of confidence in the country’s economic management. “The successful issuance represents a clear validation of the sovereign’s credit fundamentals and new disciplined policy framework,” said Tancoo.
“Achieving pricing tighter than benchmarks, while also attracting an order book 2.5 times the final issue size in the US market, reflects sustained investor confidence in the credit and improved risk perception of the new Government of the Republic of Trinidad & Tobago,” the Finance Minister added.
The announcement comes at a time when Trinidad and Tobago carries negative outlooks from both Standard & Poor’s and Moody’s. Despite this, the bond attracted strong and diversified investor demand, with over 144 unique investors, up from 93 in the 2024 issuance. During the three-day roadshow starting 16 January, Tancoo and Central Bank Governor Larry Howai met with more than 50 global fixed-income investors. When books opened in New York, demand surged quickly.
Tancoo underscored that the bond “leverages over 140 unique orders from top accounts” and that the transaction “meaningfully enhances the country’s funding profile and supports continued engagement with global investors on increasingly favourable terms.” He also pointed out the achievement of “the largest bond transaction in the past ten years for the Republic of TT” and “the largest order books in the last five years of US$2.4bn despite two negative ratings outlooks.”
Pricing ultimately compressed by 20 basis points from initial guidance, closing at 98.552%, 54.6 basis points tighter than the 2016 issuance it replaces. Compared to other recent Caribbean bond issues, Trinidad and Tobago’s terms appear favourable. “The Bahamas…went to market with a ten-year US$1.67bn bond…with a coupon rate of 8.25%. Barbados…with a fixed rating of B+ went to market with a US$500mn bond…at 8%. Additionally, Dominican Republic’s 12-year US$2bn bond generated a 6.9% coupon,” Tancoo noted.
He concluded that “international investors continue to place Trinidad and Tobago in a higher quality bucket even amid elevated global rates and recent outlook revisions.” However, some analysts point out that recent and expected US Federal Reserve interest rate cuts likely played a role.
The bond was issued under Rule 144A and Regulation S, targeting qualified institutional buyers in the US and international markets. As per standard practice, the notes are exempt from local taxes and exchange controls, ensuring smooth trading in global markets.
However, the road ahead is not without risk. S&P recently affirmed the country’s BBB- rating but revised the outlook to negative, warning of possible downgrades within six to 24 months without reforms to strengthen public finances and bolster non-energy growth.
Tancoo acknowledged these challenges but insisted that the government is addressing them through a combination of tax reform and energy-sector partnerships. “We have been putting in place measures for that exact purpose…we expect that those revenue streams…would be generating sufficient foreign exchange so that when the bond becomes due in fiscal 2026, that the country will be in an appropriate comfortable place to meet its financial obligations.”
The bond issuance marks another chapter in Trinidad and Tobago’s evolving presence in global capital markets. Once a darling of investors during the energy boom years, the country’s creditworthiness has since been dented by energy sector decline, fiscal slippage, and foreign exchange constraints. Yet, this oversubscribed bond demonstrates that the country still commands strong investor interest—albeit at a higher cost.
In today’s global environment, every basis point matters. On a US$1bn issuance, a 50 basis point increase translates to an additional US$5mn annually in interest expense. As one analyst summarised, “Trinidad and Tobago remains creditworthy, but creditworthiness is not binary, it is priced on a continuum.”
Source: Caribbean Insight – Volume 48, Issue 2
16 January 2026
Pressure is mounting on Caribbean governments after the US announced that it will suspend immigrant visa processing for 75 countries including several from the region.
The list, published by several international media outlets, includes Antigua and Barbuda, Barbados, Cuba, Dominica, Grenada, Haiti, St Kitts and Nevis, St Lucia and St Vincent and the Grenadines, but notably excludes Trinidad and Tobago which has become a closer US ally in the ongoing US tensions with Venezuela.
The US State Department, under Secretary of State Marco Rubio, announced that as of 21 January, consular officers will pause immigrant visa processing for nationals deemed likely to become “public charges.”
“The Trump administration is bringing an end to the abuse of America’s immigration system by those who would extract wealth from the American people,” State Department spokesman Tommy Pigott said. The pause will not apply to applicants seeking non-immigrant visas for temporary travel such as tourism or business.
The move comes even as four Caribbean countries—Antigua and Barbuda, Dominica, St Kitts and Nevis and St Lucia—have controversially agreed to accept asylum seekers and third-country migrants expelled from the US. Other countries such as Guyana are in talks with the US, while Barbados has not ruled out a similar agreement.
Dominica Prime Minister Roosevelt Skerrit acknowledged that his government “has entered into an agreement to facilitate third-country refugees to be sent to Dominica.” He tied the decision to the 16 December executive order that placed Dominica under partial travel restrictions, saying, “This engagement is based on our responsibility to safeguard the well-being of our people… while strengthening cooperation between our two governments.”
Skerrit admitted that these are “careful deliberations,” though opposition leader Joshua Francis strongly criticised the lack of transparency. “The UPP believes this agreement has the potential to further destabilise our nation economically, socially, and from a security standpoint,” said Francis.
Antigua and Barbuda, meanwhile, framed its arrangement as a “non-binding Memorandum of Understanding.” Prime Minister Gaston Browne stated his country would consider no more than 10 asylum seekers per year, with strict case-by-case assessments and rejection of individuals with criminal records. “This was not a concession, nor an attempt to trade people or curry favour. It was a measured diplomatic gesture,” the government said.
St. Kitts and Nevis Prime Minister Terrance Drew confirmed a limited agreement—but explicitly excluded Haitians. “This does not involve anybody outside of CARICOM,” Drew said, adding that “because of security matters, it does not include Haiti at this time.” His comments have sparked backlash, particularly as St Kitts currently chairs the CARICOM bloc.
Similarly, Guyana is working toward a “unique” framework to accept skilled migrants with no criminal records. “This is not a case where the US would be dumping people in Guyana,” said Foreign Secretary Robert Persaud, noting the country’s oil-fuelled economic transformation has created a need for 70,000 to 80,000 skilled workers.
St Lucia’s Prime Minister Philip Pierre also confirmed his government approved an MOU to potentially accept third-country nationals. However, the government stressed that no agreement had been signed and that the MOU is “non-binding” and “does not trigger any immediate transfer.”
Despite these concessions, Caribbean nations remain under mounting scrutiny. The US cited security concerns around Citizenship by Investment (CBI) programmes in countries like Dominica and Antigua—accusing them of offering “golden passports” to nationals of Russia, Iran, and China without proper vetting.
Caribbean states are also grappling with the expansion of the US visa bond programme, which now applies to 38 countries including Dominica and Antigua and Barbuda. The Trump administration insists these refundable bonds, ranging from US$5,000 to US$15,000, are “an effective tool to ensure compliance with visa terms.”
Prime Minister Gaston Browne has formally objected, sending a diplomatic note to Washington arguing that Antigua has a low overstay rate and a strong record of cooperation. He also said that very few Antiguans would likely be subject to the bond.
As US deportations intensify, Caribbean nations are caught in a bind; forced to balance their economic and diplomatic ties to the US against internal public backlash and fears of destabilisation. With new agreements multiplying and visa restrictions deepening, the region must confront how to maintain sovereignty and stability while navigating an increasingly transactional US immigration policy.
Source: Caribbean Insight – Volume 48, Issue 1
28 November 2025
The US has removed key “reciprocal” tariffs on several Caribbean Community (CARICOM) exports, reversing measures that regional producers said were squeezing earnings and raising prices.
An executive order signed by US President Donald Trump on 14 November 2025 ends tariffs imposed in April 2025 and modified in August, restoring duty-free access for a number of agricultural and chemical products.
The CARICOM Private Sector Organisation (CPSO) welcomed the shift, saying it brings “important relief to regional industries that had been negatively affected by the reciprocal tariffs implemented in April 2025 and updated in August 2025”. The group had estimated that the tariff regime could cut CARICOM export revenue by about US$653.6mn per year.
According to the CPSO’s study, agriculture and food exporters faced potential annual losses of US$117.7mn, while chemicals producers risked about US$86.1mn, including fertilisers and other industrial inputs.
CPSO Chief Executive Officer and Technical Director Patrick Antoine said the findings strengthened the case for collective lobbying by CARICOM Heads of Government, who engaged US counterparts on the urgency of addressing the measures affecting critical exports from the region.
Lower duties should ease cash-flow pressures on exporters of fresh produce, processed foods and other agri-items, while helping to rebuild confidence among US buyers who had begun shifting orders.
The rollback is particularly significant for Trinidad and Tobago, CARICOM’s leading industrial exporter and the member state hardest hit in the chemicals sector. Under the earlier America First measures, exports of methanol and nitrogen fertilisers were subjected to a 15% duty. With the new order, the CPSO said goods now exempted include ammonia and urea ammonium nitrate (UAN) as well as methanol and selected agri-food products.Trinidad and Tobago’s Ministry of Foreign and CARICOM Affairs reported that the country exported about TT$3bn ( US$442.2mn at current average exchange rates) in anhydrous ammonia, urea and UAN to the US in 2024. Officials expect the return to zero tariffs to restore price competitiveness in the US market and protect jobs across the fertiliser and energy value chain.
Trade and Investment Minister Kama Maharaj said the April tariffs had jeopardised the country’s largest trading relationship and posed a serious threat to the economy. He credited Prime Minister Kamla Persad-Bissessar’s sustained diplomacy for persuading Washington to reverse course, and praised her effort. “That is what world-class leadership looks like-when a leader puts country before comfort, and people before politics,” said Maharaj.
At the regional level, Antoine argued that the decision stabilises supply chains and delivers relief where it is most needed. “This decision is both timely and consequential,” he said, pointing to renewed competitiveness for Trinidad and Tobago’s chemicals exports and to the benefit for agricultural exporters across CARICOM. He noted that for Jamaica, the rollback comes as farmers rebuild after Hurricane Melissa, and stressed that “when the Community acts in a unified and coordinated manner toward a shared purpose, positive outcomes are achieved for the people of CARICOM.”
The CPSO expects the tariff removal to have knock-on effects inside the region. Several categories of imports from the US had risen in price after Caribbean firms absorbed higher costs for non-US inputs under the reciprocal regime. With those tariffs lifted, the organisation anticipates gradual reductions in input costs for agro-processing and manufacturing, providing some breathing room to firms that have faced months of uncertainty.
Trinidad and Tobago’s Foreign and CARICOM Affairs Minister Sean Sobers welcomed the change, saying he was “encouraged and grateful for this outcome, which will bring meaningful relief to exporters.” He signalled that discussions with Washington will continue to seek elimination of remaining tariffs and wider market access for both energy and non-energy goods.
For CARICOM exporters heading into peak shipping months for fertilisers and agri-food products, the order removes a major cloud over sales to their largest market. While analysts have argued that the move by the US is aimed at seeking support for its current military operations in the region, the benefits to regional exporters cannot come at a better time.
Source: Caribbean Insight – Volume 47, Issue 23
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14 November 2025
The full economic toll of Hurricane Melissa on Jamaica is rapidly escalating, with new modelling suggesting losses could exceed US$20bn, a value higher than the country’s entire 2024 economic output, even as international aid, insurance payouts and private relief efforts intensify.
Moody’s Event Response Services now estimates that overall economic losses from the Category 5 storm may surpass the equivalent of Jamaica’s 2024 GDP, far above the government’s initial damage estimate of US$6bn to US$7bn.
The modelling captures property destruction, severe business interruption, widespread infrastructure damage and non-modelled impacts such as extended shutdowns and flooding, signalling a systemic economic shock rather than a short-term setback.
Private insurance losses from Melissa across Jamaica and other affected territories, including The Bahamas, Haiti and the Turks and Caicos Islands, are projected between US$3bn and US$5bn, with a central estimate of US$3.5bn.
These losses are driven largely by wind damage to hotels, resorts and other commercial properties, with business interruption claims expected to be substantial. Verisk estimates insured losses in Jamaica alone at between US$2.2bn and US$4.2bn.
Yet the protection gap is stark. Only about 20% of Jamaican homes are insured and an estimated 95% of insured properties are underinsured, according to industry data cited by Moody’s, leaving tens of thousands of families exposed. “Most insured buildings are well-built… In contrast, uninsured residential buildings largely exhibit less stringent build quality… As a result, as Melissa’s catastrophic winds tracked across the island, immense damage was caused to several communities,” said Moody’s Managing Director of Modelling and Analytics Raj Vojjala.
The human cost is also mounting. At least 32 people have been confirmed dead in Jamaica, with dozens more killed elsewhere in the region. “All of Jamaica is going through this period of mourning and this period of pain,” said Education Minister Dana Morris Dixon. Entire communities in western parishes remain cut off as roads, bridges, electricity and telecommunications networks lie crippled. UN assessments indicate more than 1.5mn Jamaicans have been affected, over 100,000 housing structures damaged, and nearly 36,000 people in urgent need of food assistance.
Despite the devastation, Jamaica’s disaster risk financing strategy is beginning to unlock critical resources. The World Bank catastrophe bond will pay its full US$150mn trigger, while the Caribbean Catastrophe Risk Insurance Facility is set to deliver a record US$91.9mn payout linked to excess rainfall and high winds. Together with contingent credit from development partners, these instruments amount to roughly 4% of GDP, providing essential short-term fiscal space even as overall losses climb.
The US has pledged a total of US$22mn in humanitarian assistance so far, alongside military and civilian assets airlifting supplies into isolated communities. “We were able to bring in heavy lift helicopters… they’ve moved more than half a million pounds of life-saving aid,” said US Under Secretary Jeremy Lewin, who stressed that Washington would remain engaged “for every stage of this recovery”. Prime Minister Andrew Holness hailed the US as one of the earliest and most decisive responders, particularly in reaching marooned communities.
The global cruise industry has also rallied. Carnival Corporation, Royal Caribbean Group and Disney Cruise Line have each committed US$1mn, while Norwegian Cruise Line Holdings has pledged up to US$100,000 plus matched donations, bringing total announced cruise-sector support to more than US$3mn. Cruise vessels and cargo ships have doubled as relief platforms, delivering pallets of water, medical supplies and essential goods to Ocho Rios and other key ports as operations resume.
Jamaica’s aviation sector, crucial for both tourism and logistics, has shown early signs of resilience, with over 1,100 flights recorded in the 13 days following the storm as airports facilitated incoming aid, cargo and outbound travellers. This rapid reopening underscores both the urgency of the relief effort and the determination to stabilise a core pillar of the economy.
Holness has warned that Melissa’s impact will strain public finances and require temporary suspension of fiscal rules. But he has also framed the disaster as a turning point. “Every repaired bridge, re-roofed home and rebuilt road must be designed for the storms of tomorrow, not the storms of yesterday,” he said, vowing to harden infrastructure, modernise the grid and leverage support from partners to “build back stronger and wiser”.
For now, as debris is cleared and aid corridors expand by air, sea and land, Jamaica stands at the intersection of immense loss and unprecedented mobilisation, a stark illustration of climate vulnerability, but also of how preparedness, insurance and international solidarity can shape the path from catastrophe toward recovery.
Source: Caribbean Insight – Volume 47, Issue 22
31 October 2025
Hurricane Melissa has left a trail of destruction across Jamaica and eastern Cuba, with winds that topped 185 mph and a regional death toll that climbed as search-and-rescue teams reach cut-off communities in several countries.
On Thursday, Jamaica confronted the aftermath of what officials called the most powerful storm in its recent history, while Cuba tallied severe structural damage and widespread flooding.
Scenes from Jamaica were stark; traffic lights strewn among debris, power lines tangled with uprooted trees, neighborhoods turned into rivers.
Speaking to the BBC, Prime Minister Andrew Holness said that in some instances “there was total devastation” and that one town named Black River had been “totally destroyed”.
The United Nations said the damage was on a level “never seen before.” UN Resident Coordinator Dennis Zulu added, “I don’t think there’s any single soul on this island that was not affected by Hurricane Melissa.”
Cuba, struck hours after Melissa crossed Jamaica, also suffered extensive damage. Early reports said the storm caused severe structural and crop damage in the provinces of Santiago de Cuba and Holguín, with high seas and heavy rains bringing extensive flooding in low lying coastal areas and damage to bridges, dams, roads, and the energy supply. Authorities said some 735,000 people spent the night in shelters, underscoring the size of the emergency on the island.
Regional casualty counts continued to firm up as communications improved. The hurricane has killed at least four people in Jamaica and 27 more across the Caribbean this week, while separate tallies recorded additional deaths in Haiti and the Dominican Republic which were hard hit by flooding days before. With the storm weakening as it moved toward The Bahamas and Bermuda, officials stressed that Melissa was still a dangerous system.Aid began flowing, though logistics remain challenging. On Thursday, Jamaica’s airports started reopening to relief flights. “It will be open tomorrow at 7:00am for commercial operations, which include incoming and outgoing flights,” Transport Minister Daryl Vaz said, pledging that the recovery will begin once relief flights come. “The devastation is enormous. Words can’t describe based on my aerial tour, so we need all hands on deck,” he added.
International partners have began to mobilise. The US State Department said that it has dispatched a Regional Disaster Assistance Response Team and Urban Search and Rescue units, while NGOs moved quickly. The UN World Food Programme said it plans to deliver 2,000 emergency food boxes from Barbados.
The UK has announced emergency funding of US$3.2mn to support rapid humanitarian operations, with UK Foreign Secretary Yvette Cooper saying, “The UK is acting swiftly to support the Jamaican authorities in providing disaster relief and expertise in response to this terrible storm.”
Jamaica’s government highlighted national resilience alongside the grim reality. Despite the difficulties the Jamaican spirit shines through as a strong reminder we are a resilient nation with the capacity to triumph over adversity,” said Prime Minister Andrew Holness while touring hard-hit St. James.“
Financial cushions are set to activate. Jamaica is set to receive a US$150mn payout from its catastrophe bond, a first-of-its-kind backstop for the island as estimates of physical damage surged. Disaster modeller Chuck Watson said Melissa caused between US$5bn and US$16bn in damage, calling it “just about the worst scenario you can imagine.”
Market analysts also flagged Jamaica’s insurance protection gap, noting that the country’s commercial take-up rate is about 30% compared to only a 10% residential take-up rate in areas like Kingston, a shortfall that will push more of the burden onto government budgets and international support. Even with insurance structures in place, macroeconomic risks loom with the potential for deep recessionary effects, pressure on banks and insurers, and a prolonged recovery.
Across the stricken zones, emergency crews faced blocked roads, downed grids, and communications blackouts. In the short term the priority across the coutries is to restore power and water, shelter displaced families, reopen schools and clinics, and restart transportation lifelines. With one month left in the Atlantic hurricane season, Hurricane Melissa is the region’s latest reminder of its vulnerabilities.
Source: Caribbean Insight – Volume 47, Issue 21
17 October 2025
Trinidad and Tobago’s new administration has tabled a national budget totaling US$8.81bn for fiscal 2025/26, underpinned by oil at US$73.25 a barrel and natural gas at US$4.35 per mmbtu.
Presenting his maiden package, Finance Minister Davendranath Tancoo told Parliament that the government expects to raise roughly US$8.24bn in revenue, US$8.81bn in spending and a deficit near US$575mn, about 2% of GDP.
Tancoo cast the plan as a people-first reset after the election. “Every dollar we spend, every measure we take, must be guided by a single principle: putting the people of Trinidad and Tobabo first,” he said to applause.
The spending side is dominated by social priorities. Education is allocated about US$1.30bn, Health US$1.22bn, National Security US$947mn and Public Utilities US$505mn, with Infrastructure (US$289mn), Transport (US$274mn), Rural Development and Local Government (US$269mn), Agriculture (US$168mn) and Housing (US$99mn) following.
Tobago’s total envelope, combining direct transfers and ministry projects, comes to roughly US$554mn, or 6.3% of expenditure.
The revenue plan mixes immediate excise and fee hikes with structural measures which take effect in 2026. For commercial and industrial users, an electricity surcharge of about US$0.0074 per kWh will begin next year (essential public services are exempt). A 0.25% asset levy on banks and insurers starts 1 January 2026, alongside a landlord business surcharge that requires registration and applies a small percentage to gross annual rent.
Excises on alcohol and tobacco take immediate effect, with rum and spirits doubling from the equivalent of about US$11.79 to US$23.59 per percent of alcohol, beer from ~US$0.77 to ~US$1.53 by gravity, and cigarettes from ~US$0.78 to ~US$1.57 per 20-pack.
A 5% import tax will apply to single-use plastics; the LPG subsidy on cylinders of 100 pounds and above is trimmed by US$0.074 per pound, while standard household cylinders are unchanged. National Insurance contributions rise by three percentage points in 2026 and again in 2027, with a gradual move of the full-pension age from 60 to 65 starting 2028.
Motorists who buy Super gasoline receive immediate relief: the pump price falls by the equivalent of US$0.15 per litre, cutting the typical 50-litre fill by about US$7.50 (from roughly US$1.15/L to US$1.00/L). VAT will be removed from a wide range of basic food items from 17 October 2025, and private pensions become tax-exempt from 1 January 2026.
Among the most far-reaching announcements was a 10% wage increase for public servants, which Tancoo said fulfills a key election promise. The increase will apply retroactively to two outstanding bargaining periods (2014–2016 and 2017–2019), bringing long-awaited back pay to thousands of state employees, including civil servants, statutory authority staff and Tobago House of Assembly workers.
Analysts estimate the measure will inject hundreds of millions of dollars into the economy, boosting disposable income and consumption, though it increases the wage bill and may also heighten inflationary pressures. Tancoo described the wage hike as both a moral and economic imperative, asserting that public servants “deserve to be treated with dignity after years of stagnation.”
To shift from short-term work schemes to permanent employment, the government will wind down the Community-Based Environmental Protection and Enhancement Programme (CEPEP) and the Unemployment Relief Programme (URP) and seed an Employment Fund worth about US$70.7mn, paired with roughly US$46.1mn from the Unemployment Fund for job creation. Tancoo also announced the Prime Minister will chair a new Financial Oversight & Appropriations Committee to police major outlays, while an Economic Resilience Council will steer investment and jobs.
The opposition People’s National Movement (PNM) derided the package as “fake and fraudulent,” focusing on the oil-price assumptions. Former Finance Minister Colm Imbert said the benchmark was “deliberately inflated.” “Having pegged the budget on a US$73 oil price when he knows that the price should really be US$53, what he is doing is overestimating revenue deliberately so that he can withdraw from the Heritage and Stabilisation Fund (HSF).”
Opposition Leader Pennelope Beckles called the design regressive for households, warning, that it gives with one hand and takes with the other. Former prime minister Stuart Young cautioned consumers, arguingthat new business-side charges will feed through to prices and rents.
Business groups offered cautious support, welcoming customs modernisation, digital payments and governance reforms, but stressing execution risks. “Lasting impact will depend on consistent inter-agency coordination and predictable turnaround times,” said The American Chamber of Commerce of Trinidad and Tobago. Chambers in San Fernando and Tunapuna praised the fuel cut and the proposal to replace VAT with a simpler sales tax, provided long-delayed VAT refunds are cleared and foreign-exchange access improves.
Energy remains the macro swing factor. The government points to revived regional gas diplomacy and US backing for Venezuela-sourced supplies that could bolster output and foreign exchange. The 2025/26 budget marks a bold reset by the new administration, blending social relief with fiscal reform in an effort to revive growth and restore public confidence. Whether the ambitious mix of wage hikes, tax changes, and energy diplomacy succeeds will depend on disciplined execution, stable oil revenues, and the government’s ability to translate promises into tangible progress.
Source: Caribbean Insight – 17 October 2025 Volume 47, Issue 20
03 October 2025
ExxonMobil has sanctioned its seventh major offshore project in Guyana, approving a final investment decision (FID) of US$6.8bn for the Hammerhead development in the Stabroek Block.
The move comes a decade after the first oil discovery in the basin, underscoring Guyana’s emergence as one of the fastest-growing oil producers in the world. The Ministry of Natural Resources confirmed the issuance of a production licence, authorising ExxonMobil and its partners to proceed with development.
“The Hammerhead project is expected to boost energy security, drive industrial growth and create employment across various sectors as it joins a growing portfolio of developments which continue to position Guyana as a key player in the global energy landscape,” said the Ministry in a statement.
Hammerhead was discovered in 2018 in the southwestern part of the Stabroek Block. It will produce approximately 150,000 barrels of oil per day, supported by 10 production wells and eight injection wells, and will also deliver up to 95mn cubic feet of associated gas to shore to support the government’s Gas-to-Energy project.
Thedevelopment will employ a floating production, storage and offloading vessel converted from a very large crude carrier, with MODEC of Japan already undertaking early engineering work. The Ministry has forecast that Hammerhead will recover some 445mn barrels of oil over its lifetime.
Dan Ammann, President of ExxonMobil’s Upstream Company, hailed the achievement. “We continue to set a new standard in Guyana; advancing an impressive seventh project just 10 years after first discovery,” he said.
“In collaboration with the people and government of Guyana, we’ve helped build a thriving new oil-and-gas industry in the country that is creating jobs, supplier opportunities, profits and follow on investments,” added Ammann. “This is about more than barrels. It’s about building an industry that will last,” he said.
The Hammerhead development adds to a remarkable series of multi-billion-dollar projects already sanctioned offshore Guyana. ExxonMobil’s Yellowtail, Uaru and Whiptail projects each carried costs of between US$10bn and US$12.7bn, and in total the company and its partners have committed more than US$60bn to Guyana’s oil sector.
Exxon operates the Stabroek Block with a 45% stake, while Hess, which has been acquired by Chevron, holds 30%, and CNOOC owns the remaining 25%.
The lineup of sanctioned projects includes Liza Phase 1, which started production in 2019 and now produces 160,000 barrels per day, followed by Liza Phase 2 in 2022, which doubled capacity to 265,000 barrels. Payara came online in 2023 with 265,000 barrels, while Yellowtail, Guyana’s largest project to date, achieved first oil in August 2025 with 250,000 barrels. Uaru is scheduled for 2026, also producing 250,000 barrels, and Whiptail is on track for late 2027 or early 2028.
Hammerhead will round out the current sequence in 2029, with Longtail under consideration for around 2030. Taken together, ExxonMobil has stated that these projects could push Guyana’s oil output to 1.7mn barrels per day by the end of the decade, with total hydrocarbons production approaching 2mn barrels of oil equivalent.
International firm TechnipFMC has also secured a contract worth more than US$250mn to provide subsea production systems for Hammerhead, including manifolds, trees and associated controls. The award marks the seventh greenfield project ExxonMobil Guyana has given to the subsea contractor.
Domestically, the government has highlighted that Hammerhead’s production licence contains stronger provisions than earlier agreements, reflecting its new legislative and regulatory framework.
The licence aligns with Guyana’s Oil Pollution Prevention, Preparedness, Response and Responsibility Act 2025 and introduces new conditions covering off-specification fluid discharges, production management, and the transfer of associated gas to the Gas-to-Energy pipeline. The Environmental Protection Agency is expected to issue a separate permit for the development.
Meanwhile, ExxonMobil’s activities are continuing to have a transformative impact on the Guyanese economy through the Local Content Act. The company reported record spending of US$415.7mn with 1,800 local suppliers in the first half of 2025, bringing its cumulative local expenditure since 2015 to more than US$2.9bn.
Around 6,200 Guyanese, representing 70% of the Stabroek Block workforce, are now employed in the sector. The Private Sector Commission has praised the commencement of in-country fabrication services at the Vreed-en-Hoop Shore Base, describing it as a significant advance in building Guyana’s industrial capacity.
All told, the Hammerhead project, due to begin producing in 2029, marks the latest step in Guyana’s dramatic transformation into a global oil power. As the Ministry noted, it “joins a growing portfolio of developments which continue to position Guyana as a key player in the global energy landscape.”
Source: Caribbean Insight – 03 October 2025 Volume 47, Issue 19