Economy, Finance and Trade

A more business-friendly government, elected in 2021, could improve economic freedom. However, protests by indigenous factions have been violently suppressed. Economic performance is expected to be stronger than the regional average, whilst…

Grenada enjoys political stability, although its state finances have deteriorated as a result of the Coronavirus (COVID-19) pandemic. Tourism accounts for a large share of exports and output, which is likely to lead to economic underperformance…

French subsidies help to maintain political stability on Guadeloupe, although the islands are prone to civil unrest against socio-economic conditions. Substantial reliance on tourism resulted in recession in 2020, caused by the negative impact of the…

Political instability has been partly to blame for a deterioration in peacefulness in Guyana, although efforts to tackle corruption are improving. The economy was the best performer globally in 2020, but major oil discoveries also raise the country’s…

The Netherlands maintains considerable clout over the affairs of Curacao, which is leading to growing calls for a full split from the European nation. Given that the economy is highly dependent on tourism and oil refining, it has suffered at the…

Dependence on the Netherlands for fiscal support is a source of uncertainty for Sint Maarten. Crime rates are high and the country’s sovereign credit has been downgraded. Excessive reliance on tourism caused a severe recession, given the impact of…

President Lula’s rise to power may not reduce political instability and polarisation in Brazil, and could negatively affect economic freedom, which is already ‘mostly unfree’. Exports have shown resilience and inflation is falling, but economic…

Organised crime continues to negatively impact Mexico, owing to a weak rule of law, which is also beset by pervasive corruption, but government spending is a bright spot in economic freedom. The economy will continue to underperform peers, but…

Economic freedom is lacking in Argentina and the political landscape is unstable, whilst corruption continues to infiltrate the highest echelons of power. Hyperinflation is causing economic pain; however, currency weakness could help exporters. A…

Democracy has seen progress in Colombia, but the rule of law is weakened by organised criminal factions. Although slowing, the economy has outperformed peers, but the country is grappling with high inflation and reliance on oil remains substantial.…

Although economic freedom is slipping, the Dominican Republic enjoys political stability, but corruption remains endemic. Economic performance has been solid, but is slowing and remains dependent on tourism, whilst the country continues to attract…

Although Venezuela is repressed for economic freedom and suffers from endemic corruption, possibilities of restructuring its significant debt pile have emerged. The economy remains massively reliant on oil and is slowing, whilst hyperinflation…

Political stability and better government finances are adding to economic freedom in Costa Rica, but corruption is on the rise. Foreign investors continue to flock to the country, but the economy is moderating and prices are falling. Discretionary…

A weak rule of law is adversely affecting economic freedom, whilst Guatemala is witnessing political instability and suppression of freedom of expression. Although resilient, output growth is slowing as remittances reduce and the US economy falters…

Considerable state involvement hinders economic freedom in Bolivia, whilst government finances remain weak and a threat to stability. Although inflation has been controlled effectively, through subsidies and solid food production, the economy is…

Stability and less corruption than peers are cornerstones of Uruguay’s political environment, whilst economic freedom is one of the best regionally. Drought will weigh on short-term economic development, owing to high dependence on agriculture, but…

Corruption undermines economic freedom in Panama and protests have been widespread, although state finances are strengthening. Economic momentum has slowed, but foreign investment is increasing and the Panama Canal continues to play an important role…

Violence mars Honduran society and economic freedom, although state finances continued to improve. Economic momentum is slowing, as exports and remittances growth slow, but lower inflation will ease the pressure on households. Whilst the population…

A weak rule of law and endemic corruption hamper economic freedom in Paraguay, although the tax burden remains very low and government finances are sustainable. In the medium term, the economy will outperform the regional average and inflation has…

Antigua and Barbuda has autonomy over its political affairs. However, the country is prone to corruption and suffers from high public debt. The country swiftly recovered from the pandemic-related economic downturn, thanks to rebounding tourism.…