Gov’t Committed To Protecting Poor And Vulnerable From Effects Of Russia-Ukraine Crisis

Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, says that the Government is committed to ensuring that the nation’s poor and vulnerable are protected from the worst effects of the Russia-Ukraine crisis.

“The Jamaican economy is resilient, and we will weather this storm,” he said, while opening the 2022/23 Budget Debate in the House of Representatives on Tuesday (March 8).

Minister Clarke noted that the conflict is the most significant in Europe since World War II, with the exodus of almost two million people.

He said that the negative effects of the war on the international community, including Jamaica, are already beginning to manifest themselves and could get worse.

He noted that the Jamaican economy could be impacted in three main ways.

First, is the increase in energy and commodity prices, including wheat and other grains.

“Higher commodity prices, today, means that average inflation for the upcoming fiscal year could be higher than previously anticipated,” Dr. Clarke pointed out.

Second, he said that as the inflationary pressure exacerbates recent supply chain disruptions, this could negatively impact the rebound from the (COVID-19) pandemic and increase the likelihood that global economic growth could slow, which could impact Jamaica’s growth.

“Third is the potential impact of adverse financial flows as global investors seek safer asset classes,” Dr. Clarke noted.

He assured that the Government is closely monitoring developments and the reaction of markets to the crisis.