After the last global economic crisis, many offshore destinations, like the Caribbean, suffered a hit in their economies causing many to be forced into austerity. But despite the economic state, savvy investors continue to capitalize on offshore investments in the Caribbean due to its benefits which far surpasses any cons imposed by the crisis.
Now, years later, the Caribbean has been fighting back to regain control of its economy and is coming out on top as one of the most sought after offshore tax havens. For example, Anguilla offshore companies and Belize offshore companies are now providing American investors with a secure and confidential place to invest their wealth while protecting those assets from any government action as well as unnecessary taxes. In addition to utilizing international companies in the Caribbean for asset protection, offshore trusts are a superb way to ensure that your assets in heirship are dispersed how you want without any legal impositions.
The Caribbean offshore financial sector provides many services to afford the asset protection, privacy and profits investors desire. The Caribbean’s economy is taking a turn for the better. Here are two ways the Caribbean is regaining strong economic stability.
Booming Tourism and Construction Sectors
Two main sectors in the Caribbean are its tourism and construction sectors. Travel and tourism has accounted for 4.5% of the region’s GDP in 2014 and is estimated to grow at a rate of 3.3% per annum from 2015 to 2022.
According to the Caribbean Development Bank, Caribbean countries like St. Kitts and Nevis, and Turks and Caicos Islands each experienced 4% increase in real estate related construction. Belize, Guyana and Suriname also had growth in excess of 3% because of construction-related services.
This rapid growth and estimated increases in growth will greatly assist the Caribbean in maintaining economic stability in years to come.
Strong Debt-Reduction Strategies are in Place
In 2012, overall public sector debt in the Caribbean was estimated at about 79% of regional GDP. Each country has devised a strategy to tackle this debt head on. For example, Belize took advantage of external debt instruments to consolidate its debt into one US dollar loan that provides cash flow relief through changes in both coupon and maturity structures. This loan allows the country to further its development on a whole while reducing its national debt.
All in all, both growing economic sectors and debt reduction strategies will lead to a more stable government. A more stable government leads to longevity of legislation and stabilization of local currencies which benefits offshore investors and guarantees consistency in their offshore businesses and accounts.
