Turks and Caicos Islands’ economic recovery continued in 2022. Real gross domestic product (GDP) grew by 6.2%, driven mainly by improved tourism performance and spillovers to the ancillary sectors. Inflationary pressures continued resulting in the need for continued fiscal policy responses to mitigate cost of living pressures on the vulnerable. An overall fiscal surplus was attained for fiscal year (FY) 2022/23 and public debt remained negligible. The merchandise trade deficit widened due to higher imports. The financial sector continues to be highly liquid and have adequate capital buffers.

Improved macroeconomic conditions are projected to continue in 2023, amid downside risks. Real GDP growth of 5.5% is forecasted for 2023, buttressed by a further recovery in stayover visitor arrivals and public and private sector construction activity. However, risks to the outlook are titled to the downside including an abrupt global slowdown which could hinder tourism prospects and the ever-present threat of weather-related hazards.