• Jamaica's capital market continued to demonstrate strong investor demand as Future Energy Source Company Limited (FESCO) and VM Financial Group (VMFG) collectively secured more than J$10Bn in fresh capital through separate debt and hybrid equity transactions, as disclosed on the Jamaica Stock Exchange (JSE).
• FESCO announced the successful issuance of a J$600Mn four-year corporate bond, arranged by NCB Capital Markets Limited (NCBCM), with proceeds earmarked to redeem its J$1Bn bond due in March 2027 of which roughly J$300Mn remained outstanding. A portion of the proceed was also used to provide long-term working capital to fund expansion across its business segments.
• NCBCM, which has led FESCO's previous debt issuances and its 2021 Junior Market listing, said the latest financing strengthens the company's financial flexibility as it continues to grow its position as Jamaica's largest domestic fuel marketing company.
• Meanwhile, VM Financial Group successfully listed J$9.5Mn in preference shares on the JSE’s Private Market on June 10^th after the offer was oversubscribed by approximately J$1.5Bn. The funds will support the Group's strategy to build a stronger, more efficient and resilient business while enhancing its capacity to serve clients and pursue future growth opportunities.
• The transaction also marked another milestone for Jamaica's capital market, increasing the number of securities listed on the JSE Private Market to 13. Adding to the positive momentum, VMFG secured investment-grade ratings from Credit Rating Services Limited (CariCRIS), with the agency citing the company's strong market position, diversified business model and sound capitalisation.
• Together, the two transactions highlight continued investor confidence in well-positioned Jamaican companies and underscore the capital market's role in financing corporate growth and long-term business expansion.

(Sources: JSE & NCBCM Research)

• On June 18, 2026, CariCRIS reaffirmed the ratings assigned to the debt issue of up to US$76Mn (or J$ equivalent) of Sagicor Financial Company Ltd. (SFC), maintaining the company's CariAA+ foreign and local currency ratings on the regional scale and jmAAA foreign and local currency ratings on the Jamaica national scale.
• The reaffirmation underscores SFC's very high level of creditworthiness relative to its Caribbean peers and the highest level of creditworthiness among issuers in Jamaica. The stable outlook maintained was on SFC’s ratings, reflecting expectations that the Group will continue to benefit from its strong market position, diversified operations, solid capitalisation, and prudent risk management framework over the next 12 to 15 months.
• Overall, the reaffirmation signals continued confidence in SFC’s financial strength and its ability to comfortably meet its debt obligations while maintaining a stable operating outlook.
• The outlook could improve if SFC achieves significant gains in the market position and profitability of its major subsidiaries, particularly Sagicor Canada and Sagicor Jamaica. Successful acquisitions or regional expansion initiatives that materially strengthen market share and enhance the Group's overall financial performance could also support a positive rating action.
• Conversely, the ratings could face downward pressure if the Group's capitalisation weakens significantly, particularly if future acquisitions result in its Life Insurance Capital Adequacy Test (LICAT) ratio falling to 100% or below. Other potential risks include a decline of more than 25% in consolidated income, interest coverage falling below 1.5 times, or a deterioration in Jamaica's creditworthiness, given the country's continued importance to SFC's earnings profile.
• Looking ahead, SFC’s ongoing Caribbean merger could further strengthen its position. The company is set to combine Sagicor Group Jamaica and Sagicor Life Inc. under the proposed Sagicor Group Caribbean holding company, creating a larger regional platform with approximately US$6.9Bn in assets.
• Management expects the integration to improve operational efficiency through shared technology platforms, enhance execution, lower administrative costs and expand its competitive position across the Caribbean, potentially increasing market share and financial performance over time.

(Sources: CariCRIS, Jamaica Observer & NCBCM Research)

• The IMF Executive Board approved a new 36-month precautionary Stand-By Arrangement (SBA) for Barbados amounting to US$257Mn. The arrangement gives Barbados immediate access to US$64Mn (BDS$128Mn); however, the Barbadian authorities have indicated that they will treat it as precautionary and will not request the funds at this time.
• According to the IMF, the SBA will provide critical insurance if external shocks generate balance of payments needs, while helping anchor macroeconomic stability and support reform implementation under the Barbados Economic Recovery and Transformation Plan 2026 (BERT 2026).
• The key pillars of the SBA include sustaining strong fiscal accounts, balancing debt sustainability with development needs, maintaining ample international reserves to support the exchange rate peg, implementing structural reforms, and building resilience to natural disasters.
• The IMF Deputy Managing Director, Dr Nigel Clarke, highlighted that Barbados’ implementation of BERT 2022 has reinforced macroeconomic stability, placed public debt on a downward path, rebuilt international reserves, restored access to capital markets, and completed important structural reforms.
• While the economic outlook remains stable, the IMF noted downside risks from geopolitical tensions, global policy uncertainty and vulnerability to natural disasters. It also stressed the need for structural reforms to boost medium-term growth, including tackling infrastructure bottlenecks, improving the business environment, and closing skills gaps.

(Sources: IMF & Nation News)

• The Organisation of Eastern Caribbean States (OECS) is considering deeper trade ties with the Dominican Republic and Panama as part of efforts to lower consumer prices across the Eastern Caribbean.
• Speaking after the OECS Summit in Antigua and Barbuda, Prime Minister Gaston Browne said the organisation has requested a temporary suspension of the Common External Tariff (CET) to facilitate greater imports from non-CARICOM markets.
• The proposal aims to give member states access to more affordable goods and food products amid rising living costs. Browne noted that Panama is one of the hemisphere’s largest commercial hubs, while the Dominican Republic could become a key supplier of competitively priced food and consumer goods.
• The OECS has asked its commission to conduct a study identifying products that can be sourced at lower costs from the Dominican Republic. The organisation also plans to engage CARICOM on suspending the tariff framework.
• The move could strengthen trade between the Dominican Republic and Eastern Caribbean nations, while helping reduce import costs and improve food security across the region.

(Source: Dominican Today)

• The U.S. economy grew faster than previously estimated in the first quarter, but consumer spending almost stalled. Gross domestic product (GDP) increased at an upwardly revised 2.1% annualized rate last quarter, the Commerce Department's ​Bureau of Economic Analysis said in its third estimate of first-quarter GDP on Thursday. Growth ‌was previously reported to have advanced at a 1.6% pace. Economists polled by Reuters had expected that GDP growth would be unrevised at a 1.6% rate.
• Growth in consumer spending was slashed to a ​0.5% rate from the previously reported 1.4% pace, reflecting downward revisions to outlays on services, including financial services and ​insurance as well as international travel. Part of the downward revisions to financial services was related to a stock market selloff last quarter.
• Looking ahead, spending appears to have picked up early in the second quarter, thanks to large tax refunds, which have partially ​mitigated a surge in gasoline prices stemming from the U.S.-led war with Iran. The average tax refund ​for the week ending May 8 was $3,276 compared to $2,939 during the week ending May 9, 2025, the last available data ‌from the ⁠IRS showed.
• Final sales to private domestic purchasers, which ​exclude government, trade and inventories, ​increased at a 1.7% ⁠rate. That was a downgrade from the previously estimated 2.4% growth pace. Profits from current production rose at a $74.4 billion rate last quarter, revised higher from the previously ​reported $40.4 billion pace. They surged at a $246.9 billion pace in the fourth quarter

(Source: Reuters)

• U.S. inflation increased further in May, breaking above 4.0% for the first time in three years as the Middle East conflict boosted energy prices, keeping an interest rate ​increase from the Federal Reserve this year on the table. The personal consumption expenditures price index surged 4.1% in the 12 months through May, the largest increase and first reading above 4.0% since April 2023, the Commerce Department's Bureau ⁠of Economic Analysis said.
• But with oil prices falling to pre-war levels on Thursday after the United States and Iran signed a preliminary peace deal, inflation likely peaked last month or is ‌close to doing so. An easing in gasoline prices is anticipated. The impact on inflation could, however, be offset by rising prices for technology goods like semiconductors and electronics amid an artificial intelligence investment boom.
• Fertilizer shortages because of the conflict were expected to raise food prices, economists said. Service prices, which increased strongly last month, were unlikely to abate quickly.
• The PCE price index climbed 0.4% over the month after rising by the same margin in April. The increase in PCE inflation was in line with economists' expectations. Goods ​prices increased 0.4% after rising 0.7% in April. Prices of gasoline and other energy goods shot up 6.5%, while food edged up 0.1%.
• The price of services jumped 0.5% after rising 0.3% in April. They were lifted by a 0.8% advance in ​the cost of transportation services as higher jet fuel prices boosted airfares. The cost of financial services and insurance increased 1.2%, reflecting a stock market rally. There were also strong rises in the costs of healthcare and other services.
• Excluding the volatile food ​and energy components, the PCE price index increased 3.4% year-on-year in May. That was the biggest gain since October 2023 and followed a 3.3% rise in April. The so-called core PCE inflation advanced 0.3% over the month for the third month in a row. The Fed tracks the PCE ‌inflation measures for ⁠its 2% target. The Fed last week kept its benchmark overnight interest rate in the 3.50%-3.75% range, but updated quarterly projections showed policymakers expected to raise borrowing costs this year.

(Source: Reuters)

• Results from the Bank of Jamaica's (BOJ’s) May 2026 Survey of Businesses’ Inflation Expectations point to continued caution among businesses as they navigate the lingering effects of Hurricane Melissa, geopolitical uncertainty stemming from the Iran-US conflict, and a domestic monetary policy environment that has remained unchanged since the BOJ's February 2026 rate cut.
• Consistent with this cautious outlook, the share of respondents who expect the Central Bank to keep rates on hold over the next three months rose to 48.4%, up from 47.6% in April, while 25.5% of respondents expect rates to be marginally higher, up from 24.3%.
• Business sentiment weakened during the survey period, with the Present Business Conditions Index declining to 60.1 from 69.2 in the previous survey. The deterioration reflected an increase in the proportion of respondents who viewed current business conditions as "worse" than they were a year ago, suggesting that some sectors continue to face challenges stemming from post-hurricane recovery efforts and broader economic uncertainty.
• Expectations for future business activity also softened, as the Future Business Conditions Index fell to 113.4 from 114.6 previously. Although respondents still anticipate an improvement in conditions over the next year, the lower reading suggests reduced optimism regarding the pace of economic recovery and business expansion.
• Businesses also continue to anticipate rising inventory-related expenses. Stock replacement led expectations for operating cost increases, with 32.8% of respondents identifying it as the input most likely to experience the largest price increase over the next 12 months. This suggests that businesses remain concerned about inventory replenishment costs and supply-side constraints, potentially reflecting disruptions to global trade and shipping routes arising from the U.S.-Iran conflict and the blockage of the Strait of Hormuz during the survey period.
• Utility costs and fuel & transport expenses were also identified as major sources of future cost increases. Notably, the proportion of respondents expecting the largest increase to come from fuel and transport rose to 24.2% in May from 18.3% in April, suggesting a growing concern about global fuel and oil prices. The increase likely reflected expectations of rising domestic energy costs after Petrojam's decision in April to pass higher international oil prices onto consumers, which would affect transportation expenses.
• Finally, wage pressures showed signs of re-emerging, with 8.0% of respondents identifying wages and salaries as the input expected to increase at a higher rate over the next 12 months. The increase points to higher labour cost expectations as businesses gradually rebuild capacity and adjust to evolving economic conditions.

(Sources: BOJ & NCBCM Research)

• Debate surrounding a formal relationship between Jamaica and its diaspora resurfaced at the recently concluded annual Jamaica Diaspora Conference in Montego Bay, highlighting longstanding political divisions over the extent to which overseas Jamaicans should participate in national governance and decision-making.
• Opposition Leader Mark Golding, in his address at the opening session of the conference, proposed that members of the diaspora be allowed to serve on public boards in Jamaica, arguing that many possess specialised skills, international experience, and professional expertise that could strengthen public institutions and support national development.
• The Jamaican diaspora, estimated at more than three million people and larger than the island's resident population, remains a significant contributor to the economy through remittances, business investments, support for schools and churches, and expertise in areas such as medicine, finance, technology, education, and law.
• While supporters contend that government boards, commissions, and advisory bodies could benefit from diaspora knowledge and global networks, critics argue that many overseas Jamaicans do not experience the day-to-day effects of government policies and may be less familiar with Jamaica's current social and economic realities.
• As such, a potential middle-ground solution could involve expanding diaspora participation through advisory councils, government boards, formal consultation mechanisms, and merit-based appointments to the Senate, allowing overseas Jamaicans to contribute expertise and advice while preserving political accountability for those who reside in Jamaica.

(Source: Caribbean National Weekly)

• The Development Bank of Latin America and the Caribbean (CAF) has announced plans to invest US$10Bn by 2031 to support projects aimed at strengthening regional integration across Latin America and the Caribbean.
• The funding will be directed toward key sectors, including physical and digital infrastructure, intra-regional trade, food security, energy, tourism, innovation, logistics, and mobility, to improve connectivity, reduce development disparities, and enhance the region’s competitiveness.
• According to CAF, the initiative forms part of its commitment to regional integration as a catalyst for sustainable development, economic growth, and resilience. It is also intended to create new opportunities for businesses and citizens across the region.
• The announcement followed discussions at the International Forum on Regional Integration in Cartagena, Colombia, where government officials, multilateral organisations, private-sector leaders, academics, and development partners explored strategies for advancing integration across the region.
• CAF also highlighted its longstanding role in supporting regional integration, noting that it has approved 118 credit operations worth US$16.73Bn for integration-related projects over the past three decades. During the last five years, it has expanded investments in physical connectivity, productive development, digital transformation, energy integration, and environmental conservation.
• The US$10Bn commitment reflects growing recognition that deeper regional integration could help Latin America and the Caribbean improve competitiveness, strengthen supply chains, and reduce vulnerability to geopolitical tensions, trade fragmentation, and global economic uncertainty.

(Source: Dominica News Online)

• The Dominican government has extended its fertiliser subsidy programme through new agreements with companies that import agricultural inputs and raw materials, allocating more than RD$1.09Bn to help stabilise production costs and protect food prices through August 31.
• The agreements were signed at the Ministry of Agriculture by Minister Francisco Oliverio Espaillat and representatives of large and small importing companies. With the latest allocation, total government support for fertiliser subsidies now reaches RD$2.151Bn, reinforcing efforts to support farmers amid global economic uncertainty.
• According to the Ministry of Agriculture, the initiative helps maintain affordable fertiliser prices, strengthen food security, and prevent significant increases in the cost of the basic food basket.
• The agreements establish cooperation between the government and the private sector to guarantee a steady supply of fertiliser raw materials, prevent shortages, and ensure input availability during peak agricultural seasons. One agreement involves major importers responsible for meeting national demand, while the second includes 11 smaller importers to broaden market participation and support wider access to agricultural inputs.
• Authorities and industry representatives highlighted the programme’s role in sustaining agricultural production, preserving price stability, supporting the long-term competitiveness of the Dominican agricultural sector, and helping keep food affordable for consumers.

(Source: Dominican Today)