Caribbean Examinations Council (CXC) Caribbean History Practice Exam 2025 – Complete All-in-One Guide for Exam Success!

The Great Depression had a profound impact on Caribbean economies, primarily causing significant economic hardship and unemployment. This global economic downturn, which began in the late 1920s and extended through the 1930s, severely disrupted trade and led to a decline in the prices of primary export commodities that Caribbean nations relied heavily upon, such as sugar and bananas. As a result, many agricultural workers faced job losses or reduced wages, leading to increased unemployment and poverty levels across the region.

Moreover, the decline in demand for Caribbean exports meant that governments had less revenue to spend, which further strained national budgets and social services. This economic distress often resulted in social unrest and dissatisfaction with colonial governments that struggled to respond effectively to the crisis. The overall decline in economic activity weakened the Caribbean economies, making it difficult for countries to recover quickly even after the global economy began to improve later in the decade. This context illustrates why the effect of the Great Depression on the Caribbean was characterized by hardship and unemployment.