Country Report St Maarten March 2011

The region: Resource-based investments will recover only slowly

Although we expect some recovery-owing to an improvement in global financing availability compared with a year ago-investment in mining and energy will remain below pre-2009 levels during the outlook period as a result of continuing instability of commodity prices. Historically high gold prices in 2011 will continue to benefit gold producers such as Suriname and Guyana. The prospects for further large-scale investment in bauxite and onshore and offshore exploration for oil and gas in Suriname are less certain. Oil and gas exploration in Guyana, Barbados, Jamaica and Belize could also be negatively affected by weak investor confidence, despite a strong recovery in global oil prices. Similarly, additional large-scale investment in alumina in Jamaica, which would be of significant economic benefit, is likely to be postponed. Trinidad and Tobago will continue its push to become a centre for high value-added chemicals and metals processing, owing to its natural-gas production and capacity for generating electricity at a comparatively low cost.

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