Preparing for Impact from Ukraine/Russia Conflict

#Jamaica, March 3, 2022 – Prime Minister, the Most Hon. Andrew Holness, says the Government is monitoring and preparing for the impact that the country’s economy will face because of conflict between the neighbouring countries, Ukraine and Russia.

“We expect that the impact on Jamaica could be through the global energy prices, oil prices, in particular, and possibly through some commodities, maybe wheat [and] flour prices,” he said.

While speaking at a recent ground-breaking ceremony for a new Stony Hill Police Station in St. Andrew West Rural, he said that the Government is also “monitoring the possible effects [caused by] the imposition of international sanctions, which could impose obligations on Jamaica” to ensure their effectiveness.

Additionally, the Prime Minister said tensions between the neighbouring countries can also lead to the fallout of global production and greater demand for shipping, with increased prices.

“Global inflation impacts local inflation and external shock. Energy prices [might] go up as a result of uncertainties in the energy market,” he further pointed out.  He noted, however, that the Jamaican economy continues to show strong recovery even in the face of crises. He, however, urged the energy and agricultural sectors to “be more resilient”.

“We need to do much more in our energy resilience. We have not done enough to cut our reliance on oil, when we have abundant sunshine and wind. We have been, as a country, toying with our energy policy,” he said.

Jamaica should have been at 50 per cent renewable energy generation by now, he said.

“I’m urging the people who are in the energy sector to set that ambition,” he added.

He further disclosed that the announcement for “a major project” that will change Jamaica’s reliance on non-renewable fossil fuels will be made in a few weeks.

“In an uncertain world, where we are price-takers of a commodity that is susceptible to all kinds of global conditions, we must insulate ourselves by utilising our God-given sunlight, wind and water,” he urged.

Meanwhile, he said food security is also vital to sustaining the economy.

“As the prices go up, households are finding it more difficult, because [with] the options to switch from high-cost food to low-cost produce, we don’t have many,” he said.

“We need to spend much more effort on ensuring our food security,” he further noted.

Contact: Chanel Spence

Release: JIS