The Caribbean offers a small but potentially significant and diverse set of markets for companies looking to expand and deepen their presence in Latin America. Indeed, in many cases the Caribbean presents opportunities that have been neglected by the competition. FSG has recently released a Caribbean Regional Overview to provide companies with an in-depth understanding of the region’s most significant growth drivers while assessing the comparative economic and operating environments that each of the major markets in the region offers.
Representing only 5% of LATAM’s GDP, the Caribbean is characterized by a diverse range of economies with relatively small populations whose growth rates diverge significantly on a market-by-market basis. While some of the more commodity-based economies in the region are experiencing relatively robust growth, many markets in the region, including Jamaica and Puerto Rico, are suffering from severe fiscal strains that leave limited room for higher growth.
Multinationals tend to take an opportunistic rather than strategic approach to developing their Caribbean presence by striving to find the right distribution partner, or building on either global or regional relationships with key customers, instead of developing a specific Caribbean market entry and penetration strategy. As they expand their presence and seek to expand their market share and revenues from the region, companies tend to find managing the diverse range of political, economic, linguistic, and legal environments challenging, particularly as developing an on-the-ground presence across most of the region is generally not feasible.
This report should help align your team around the markets that provide the greatest risk-adjusted opportunity, and understand the key risks and scenarios for the Caribbean region.