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CARICOM sends warning as Oil prices creep higher in the Israel v Iran conflict; 14 regional states import energy

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Garfield Ekon
Staff Writer

The recent attack on the Sate of Israel by the Islamic Republic of Iran, has delivered growing uncertainty across the Caribbean region, and the rest of the global economy.

Chief among the many concerns, is the free flow of oil from the Middle East, which stands at 31% of daily production for the global economy. At minimum, shipping costs are likely to increase based on the increased risk of military action in the Persian Gulf.

Pressure is also building on US and European insurance clubs to avoid any transaction, including those with China, that involve Iranian crude and additional rerouting of oil and gas shipments in response to Houthi threats, or Allied responses.

According to the Caribbean Community Council of Foreign and Community Relations (COFCOR), “these developments not only exacerbate the already tense situation but also pose significant threats to regional stability and international peace,” the group warned in a media statement.

It added that the continued cycle of retaliation, including the recent attack on Israel by Hamas, Israel’s “disproportionate response” in Gaza, and the “alarming new dimension of direct confrontations between Israel and Iran, leads to an untenable situation fraught with potential for greater regional conflict and global instability.

“The human toll of this conflict, highlighted by tragic incidents such as deaths and injuries to children, demand an immediate and empathetic response from the global community. It is imperative that there be no further escalation that can lead to more suffering and instability,” it said.

While calling for an immediate cessation of hostilities between Israel and Iran, the regional body underscored that it strongly urges both nations to halt any further military actions that could worsen the situation, endangering not only their own populations but also the broader international community.

“We implore all parties to consider the severe consequences of further conflict and to commit to diplomatic solutions that ensure the safety, sovereignty, and dignity of all people involved,” the CARICOM statement said.

On October 6, 2023, the day before Hamas attacked Israel, the international benchmark Brent crude was trading at $85 per barrel and has been fluctuating at up to $96.

On Thursday, it traded at $91 per barrel. With the exception of gas-rich Trinidad and Tobago, the 14 other countries of CARICOM, are energy importers.

Approximately 93 percent of the region’s energy needs are met by oil imports, which average 13% of Gross Domestic Product (GDP).

 

 

Caribbean News

Migration Is No Longer Just About Borders

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What Caribbean migration dialogues reveal about the region’s future

 

By Patrice Quesada, Coordinator, IOM Caribbean

Migration has become one of the defining issues shaping the Caribbean’s future—not simply because people are moving, but because our economies, labour markets, populations and climate realities are changing.

Over the past several weeks, I have participated in migration discussions at the global, regional and national levels. While each conversation was different, they all pointed to the same conclusion: the Caribbean is beginning to recognize migration not only as a border issue, but as a development issue.

The challenge now is moving from dialogue to action.

From Global Commitments to Caribbean Solutions

That shift was evident during the International Migration Review Forum held at the United Nations in New York, where Caribbean participation was particularly strong. Delegations from ten Caribbean countries, including ministerial representatives from Barbados and Belize, reinforced the region’s growing commitment to shaping international migration policy.

Two messages emerged clearly.

First, migration governance must be grounded in each country’s realities and supported by concrete national commitments. Second, migration cannot be viewed in isolation. It is closely linked to labour markets, demographic change, climate vulnerability and long-term development planning.

Every Caribbean Country Has Its Own Story

Across the region, governments are approaching migration through different lenses.

In Saint Lucia, the launch of the country’s draft migration policy reflected concerns about declining birth rates, labour shortages and continued emigration. The discussions recognised that labour needs, diaspora engagement, remittances, return migration and protection must all work together within one national strategy.

Jamaica demonstrated how migration planning can begin at the local level, with Clarendon becoming the country’s first parish to integrate migration considerations into its long-term development strategy.

Guyana, meanwhile, is managing migration in the context of rapid economic growth, balancing increased labour demand with worker protections and orderly migration systems.

Barbados has also begun incorporating migration into broader population planning as it addresses demographic decline and an ageing population.

The Bahamas has focused on disaster preparedness, bringing together government agencies to strengthen national plans for managing inter-island and cross-border movement during emergencies while safeguarding the rights and dignity of displaced people.

Different countries face different challenges—but all are recognising migration as an essential part of national planning.

The Caribbean’s Greatest Untapped Asset

One message resurfaced repeatedly throughout these discussions.

The Caribbean diaspora should no longer be viewed simply as a source of remittances.

Across the region, citizens living abroad continue to contribute through investment, entrepreneurship, professional expertise, advocacy and, in many cases, by returning home with new skills and experience.

The opportunity now is to engage the diaspora more deliberately as a strategic development partner.

Turning Dialogue into Action

Technical discussions held throughout May demonstrated that governments are beginning to move beyond policy conversations.

CARICOM, supported by the International Labour Organization and the Inter-American Development Bank, convened regional labour migration specialists to explore how migration can help address workforce shortages while ensuring fair recruitment and decent working conditions.

Together, these initiatives suggest the Caribbean is entering a new phase—one where migration is no longer viewed simply as movement across borders, but as a tool for economic resilience, demographic planning and sustainable development.

The conversations have begun.

The next challenge is ensuring they lead to meaningful action.

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Caribbean News

Caribbean Urged to Rethink Tourism as Travel Patterns Shift

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Deandrea Hamilton | Editor

The Caribbean’s tourism industry has mastered the busy season. Now, a new report says the region’s biggest opportunity lies in transforming the months it has long considered its slowest.

The latest Amadeus Travel Insights Report, produced in partnership with the Caribbean Hotel and Tourism Association (CHTA), urges Caribbean destinations to strengthen marketing efforts and forge closer partnerships with airlines to stimulate demand during the traditionally quieter months of September and October.

The report comes despite a strong performance by the region, with international visitor arrivals climbing by approximately 30 percent over recent years. Researchers caution, however, that continued growth cannot be taken for granted simply because demand remains strong during peak travel periods.

Instead, the study points to a persistent seasonal challenge.

While Caribbean destinations continue to attract robust visitor numbers during the winter travel season, arrivals typically flatten once the calendar turns to late summer and early autumn. Those months coincide with the height of the Atlantic hurricane season—a reality that has long influenced travel decisions and presents a challenge largely beyond the control of tourism-dependent economies.

The report suggests the solution lies in changing traveller behaviour rather than simply waiting for demand to return.

That means targeted promotions, strategic airline partnerships, expanded route development and marketing campaigns designed specifically to encourage off-season travel.

There is another encouraging finding for the Caribbean.

According to the report, airfares to Caribbean destinations remain broadly competitive with those to South America, giving the region a valuable advantage as travellers continue searching for affordable international getaways.

For tourism leaders, that pricing competitiveness provides an opportunity to attract visitors who increasingly weigh value alongside destination appeal when planning holidays.

The challenge now is convincing travellers that the Caribbean offers compelling experiences beyond its traditional high season.

Whatever strategy emerges, the report suggests success will depend on balancing innovation with reality. September and October will always bring heightened weather risks, but with stronger airline partnerships, creative marketing and attractive pricing, the region could unlock new opportunities during months that have historically been among its quietest.

For a tourism industry built on resilience, the next frontier may not be attracting more visitors—but attracting them at a different time of year.

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Africa

Africa’s Latest Economic Report Sees Caribbean Price Pressures Easing

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By Deandrea Hamilton | Editor

For years, Caribbean families have endured relentless increases in the cost of food, fuel, housing and everyday essentials. Now, one of Africa’s leading financial institutions says the worst of those inflationary pressures may finally be easing.

The African Trade Report 2026, published by the African Export-Import Bank (Afreximbank), shows inflation across Latin America and the Caribbean fell sharply from 16.6 percent in 2024 to 7.6 percent in 2025. The report compares economic performance across the world’s major regions, placing Latin America and the Caribbean alongside Africa, Asia, Europe and advanced economies.

The figures suggest regional price pressures have moderated considerably after several years of high inflation driven by supply chain disruptions, rising energy costs and global economic uncertainty.

Consumers, however, should not expect prices to suddenly return to pre-pandemic levels.

Economists note that lower inflation does not mean goods and services become cheaper. Rather, it means prices are continuing to rise, but at a much slower pace than before. That distinction helps explain why many Caribbean households may still feel the strain at the supermarket, petrol station and on utility bills despite improving economic indicators.

The report also points to a relatively stable regional economy. Gross domestic product growth for Latin America and the Caribbean held steady at 2.4 percent in both 2024 and 2025, suggesting economic expansion continues, albeit at a modest pace.

For Caribbean governments, the findings provide cautious encouragement. Lower inflation can reduce pressure on household budgets, improve consumer confidence and give central banks greater flexibility as they balance economic growth with price stability.

Perhaps most intriguing is the source of the analysis.

Rather than coming from a traditional Western financial institution, the assessment comes from Africa’s premier trade finance bank. The report treats Latin America and the Caribbean as an important global economic region and repeatedly highlights the growing importance of ties between Africa and its diaspora, including the Caribbean. It argues that stronger economic, trade and investment relationships across what it calls “Global Africa” could become a powerful driver of shared prosperity in the years ahead.

For Caribbean readers, the report offers more than encouraging inflation figures.

It provides an outside perspective on the region’s economic performance and serves as a reminder that the Caribbean is increasingly being viewed not only as a tourism destination, but also as an emerging partner in trade, investment and global development conversations.

As governments continue searching for ways to ease the cost of living, Africa’s latest economic report suggests there is at least one reason for cautious optimism: the pace of price increases across the Caribbean is finally beginning to slow.

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