By Antonio Dey | HGP Regional News |
Governments across the Caribbean and Latin America are navigating economic strain, political uncertainty, and evolving leadership dynamics, as several major developments unfolded across the region this week.
Jamaica: Central Bank Holds Interest Rate Amid Inflation Concerns
In Jamaica, the Bank of Jamaica has opted to hold its policy interest rate at 5.7 percent, citing heightened inflation risks linked to the more severe-than-anticipated economic fallout from Hurricane Melissa.
The policy rate—used by the central bank to influence borrowing costs, spending, and inflation—was maintained following meetings of the Monetary Policy Committee held on December 16 and 17. In a statement released on Thursday, the central bank revealed that updated assessments now show hurricane-related damage exceeding 40 percent of Jamaica’s Gross Domestic Product, a figure significantly higher than earlier projections.
The Bank said the decision reflects the need for caution as reconstruction efforts, supply disruptions, and rising costs continue to pose inflationary pressures across the economy.
Honduras: Special Vote Count Launched After Election Uncertainty
Meanwhile in Honduras, electoral authorities have launched a special recount of the final batch of votes from the country’s November 30 presidential election, following nearly three weeks of uncertainty, allegations of irregularities, and mounting international pressure to conclude the process.
The recount involves 2,792 ballot boxes, though officials have not indicated how long the exercise will take. The prolonged delay has drawn scrutiny both domestically and internationally, as political tensions remain high in the Central American nation.
Brazil: Bolsonaro Endorsement Raises Questions Ahead of 2026
In Brazil, political analysts are questioning the future cohesion of the country’s right-wing movement after former president Jair Bolsonaro endorsed his eldest son, Senator Flávio Bolsonaro, as a potential contender in the 2026 presidential election.
The endorsement has sparked debate over whether Bolsonaro—who has been barred from holding public office since 2023 and is currently serving a 27-year sentence related to an attempted coup plot—still holds enough political influence to unify his coalition.
Observers note that the move has unsettled some allies and investors, raising uncertainty about leadership, strategy, and the direction of Brazil’s conservative bloc heading into the next election cycle.
As the region continues to grapple with economic recovery, democratic processes, and shifting political landscapes, these developments underscore the complex challenges shaping the Caribbean and Latin America.
