News Americas, NEW YORK, NY, Sat. May 15, 2021: Communities across the Caribbean countries and territories were just as ravaged by the effects of the COVID-19 pandemic on their populations and economies as the rest of the world. Lockdowns and restrictions in the whole region, including Florida, have affected most of the industries in the region.
Tourism is undoubtedly one of the sectors that attract visitors to this wider region. However, businessmen are regular visitors to the region, and they come to transact with some of the powerful industries like shipping, oil and gas, and agriculture.
Shrinking economies and a high number of deaths in the region have characterized the pandemic, but as vaccine rollouts increase and people are looking at post-pandemic trends, there is cautious optimism that the region has infinite economic potential.
According to the IMF, countries more dependent on tourism will grow by 1.4%, but the commodity exporters in the region are expected to grow by 6%.
Stimulating Investment Opportunities
Caribbean reforms have already increased business confidence in an area with many investment opportunities. Forecasts for 2020 were in line with the previous years of economic expansion, but the pandemic put a halt to that.
International debt obligations have become more difficult to meet, and the area will have many challenges as it moves forward. The region is also feeling the devastating effects of climate change and other natural phenomena.
On the bright side, trade in the area is expected to increase as investors look to capitalize on the recovery. Entrepreneurs with wonderful ideas are also always ready to entice consumers.
Historically, Caribbean countries have had close relations with their neighbors, especially the U.S. states close to them, and Florida is no exception. As hemispheric neighbors, business dealings between the regions are expected to grow.
Important Industries in the Region
Most countries in the region are small, and many of their basic materials required for manufacturing are imported. Foreign demand for their products and services is vital for their economic sustainability.
The fast action taken by the Caribbean to secure their populations from the effects of the virus ensured that some countries were able to open their tourism sector a bit in 2020. Unfortunately, the Caribbean’s largest tourism market, the U.S., was struggling with the virus, and traveler numbers from there remained low. The tourism sector is hitting back with new tourism and hospitality offerings.
Most countries in the region still have a high dependence on tourism. According to the IMF, tourism in Antigua, Aruba, the Bahamas, Barbados, Dominica, and Belize accounts for between 50 and 90% of their GDP.
However, the export of vital ores minerals, oil, and natural gas to the rest of the world are expected to help Guyana, Suriname, Trinidad and Tobago, Cuba, and Jamaica with their recovery efforts. The drop in demand for oil and gas through 2020 affected the income of the producing countries, but demand has increased and prices are back on track. The demand for bauxite, nickel, and gold is also growing, helping to improve business prospects in the region.
Embracing new technologies
The Caribbean business startup scene has become very vibrant over the last decade and is expected to recover quickly post-pandemic. People in the region have proven their adeptness at using their skills and embracing new technologies to create some brilliant ideas. This has been helped by reforms across the region, facilitating business.
Post pandemic, they are expected to reach out to new markets, especially in the U.S. Florida continues to be a favored destination for Caribbean startups and businesses looking to expand. The ease of financing a business is expected to increase once again, a welcome boost for entrepreneurs.
As businesses move across the Gulf into the markets of Florida, they must ensure they never miss any important communication from federal or state agencies. They also need to make sure they do annual report filings, and to receive any service of process quickly to avoid legal complications.
Since using a registered agent is required by law, finding a Florida Registered Agent is vital for any Caribbean business operating in the U.S. Organizations like TRUiC in the US provide a lot of guidance to entrepreneurs and it is worth considering such services.
Businesses in the wider region of the Caribbean and the U.S. state of Florida share similar economies as far as the hospitality industry and business startups are concerned. Even though both were adversely affected by the COVID-19 pandemic, post-pandemic trends indicate that these markets are more resilient than originally thought.