Connect with us

Caribbean News

BOJ Anticipates Minimal Price Disruptions from US Tariffs

Published

on

Kingston, Jamaica, May 21, 2025 – The Bank of Jamaica (BOJ) Monetary Policy Committee (MPC) projects that the initial impact of rising US tariffs on prices in Jamaica will be minimal.

“In assessing the near-term outlook, the Monetary Policy Committee contemplated the implications for the Jamaican economy of the policies that have been implemented by the US administration, to date, and in so doing looked at several scenarios. From this exercise, the Bank’s view is that the first-round impact of the increase in US tariffs on prices in Jamaica will not be significant,” BOJ Governor, Richard Byles, said.

He was addressing the Quarterly Monetary Policy Report press conference at the Jamaica Conference Centre in downtown Kingston on Wednesday (May 21).

The Governor noted that, in the US, these policies are likely to cause a temporary rise in inflation.

“We expect that the US Federal Reserve (the Fed) will respond appropriately, and we also anticipate a slowing of the pace of US economic growth. We note that the Fed maintained its interest rate target in the range of 4.25 to 4.50 per cent in the May 2025 meeting and is likely to continue to maintain rates for an extended period of time in 2025,” he said.

Mr. Byles pointed out, however, that while some consumer prices in Jamaica may rise due to higher inflation in the US, the impact of imported inflation on overall domestic price level increases will be largely offset by declining global oil prices.

“Given the available information, the Bank, therefore projects, a moderate impact of the US policy changes on prices in Jamaica. In this context, the outlook is for inflation to remain within the Bank’s target range of four to six per cent over the next two years, notwithstanding some upside risk. This outlook assumes stable inflation expectations, a moderate decline in crude oil prices, continued stability in the exchange rate and moderate domestic demand,” the Governor added.

Mr. Byles pointed out that the risks to the inflation forecast are, however, skewed to the upside, which means the out-turn could be higher than projected.

“Higher inflation could stem from a sharper-than-anticipated increase in the tariff faced by trading partners of the US. In addition, domestic inflation could be higher than projected if there is a further escalation in geopolitical tensions, which could negatively impact international supply chains. Lower inflation could, however, result from lower-than-projected international commodity prices as well as weaker demand conditions,” he explained.                                                                                                                                                                                                               Consequently, the Governor said the MPC will continue to closely monitor domestic inflation expectations and any upward pressure on prices resulting from the evolving tariff landscape.                                                                                                                                                                                                     Mr. Byles added that the Bank is prepared to adjust its monetary policy stance if its outlook does not materialise and inflation deviates upwards from the Bank’s target range.

“Importantly, the Bank is well positioned to support stability in the foreign exchange market, should the effects of the policy changes abroad affect foreign exchange flows by more than currently anticipated,” he stated.

The Governor said the BOJ remains committed to achieving its primary mandate of maintaining inflation at four to six per cent and will deploy the tools necessary to preserve price and foreign exchange market stability.

Meanwhile, Mr. Byles said US policy changes may have some impact on Jamaica’s gross domestic product (GDP) growth and the external accounts, to the extent that tourism and goods exports as well as remittances are affected.

“Some of Jamaica’s exports will be exempt from the baseline tariff imposed on Jamaica by the US, and this may augur well for growth in those industries. The economy is, therefore, projected to grow moderately over the near term.

“Against this background, and factoring domestic demand conditions, for fiscal year 2025/26, real GDP is projected to recover in the range of one to three per cent, largely reflecting normalisation in the mining, tourism and construction sectors. In this context, employment levels are projected to remain high, even as anecdotal data suggest that wage pressures are moderating,” he said.

Meanwhile, the Governor indicated that Jamaica’s current account balance is expected to remain in surplus in the near term, with international reserves projected to remain healthy.

“The Bank projects that gross reserves will improve further over the medium- term, remaining above the Assessing Reserve Adequacy (ARA) 100 per cent,” he said.

Mr. Byles pointed out that “the external environment carries much uncertainty, but the domestic macroeconomic outlook remains stable in the Bank’s view”.

 

CONTACT: CHRIS PATTERSON

Release: JIS

Caribbean News

Caribbean Surrounded by Water, But Still Critically Insecure — Experts Call for Urgent Action

Published

on

Deandrea Hamilton | Editor

July 19, 2025 – Despite being surrounded by oceans and known for lush, rain-fed landscapes, the Caribbean is among the most water-insecure regions in the world — a paradox that experts say cannot be ignored.

At a recent regional workshop hosted by the Global Water Partnership-Caribbean (GWP-C), water and climate professionals from across Caribbean Small Island Developing States (SIDS) issued a sobering call to action: our islands may be full of water, but our people are increasingly without it.

“Water security is not just a development issue—it’s the foundation of our resilience, health, economy, and environment,” said Professor Paulette Bynoe, Chair of GWP-C. “Caribbean SIDS face rising climate threats, aging infrastructure, and chronic underinvestment. The time to act is now.”

The region loses up to 60% of treated water before it reaches taps due to leaky systems and outdated infrastructure. Meanwhile, many households across the Caribbean still lack consistent access to clean, piped water, despite frequent rainfall.

The workshop, supported by the UN Environment Programme, focused on implementing Integrated Water Resources Management (IWRM) — a holistic and participatory approach to managing water systems. According to Dr. Roxanne Graham-Victor, Regional Coordinator for GWP-C, the gathering provided a “space to bring your country’s story and real-world solutions to the table.”

UNEP Caribbean chief Vincent Sweeney praised the forum as a launchpad for peer learning and concrete planning. Facilitator Chris Corbin urged countries to shift from endless planning to “inclusive, realistic, short-term actions” — supported by longer-term strategies that attract funding.

The event ended with participating countries pledging to strengthen cooperation, invest in climate-resilient infrastructure, and roll out mini action plans tailored to their national challenges.

The takeaway: in the Caribbean, water isn’t scarce — but security is. And the time to fix it is now.

Continue Reading

Caribbean News

Five Years to Go, But World Is Falling Behind on Global Development Goals

Published

on

Deandrea Hamilton | Editor

 

July 19, 2025 – The world is officially off track in delivering on the Sustainable Development Goals (SDGs), with just five years left until the 2030 deadline. That’s the sobering message from the United Nations Secretary-General António Guterres and the UN Department of Economic and Social Affairs, as they launched the SDG Report 2025 on July 14.

“Only 35 percent of SDG targets are on track or making moderate progress. Nearly half are moving too slowly, and 18 percent are going in reverse,” Guterres stated. “We are in a global development emergency.”

The report outlines real, measurable wins: more than 110 million additional children are in school since 2015. New HIV infections are down 40 percent since 2010. Electricity access now reaches 92 percent of the global population, and 45 countries have achieved universal electricity. Internet use has soared by 70 percent in a decade, now reaching 68 percent of the world’s people. Child marriage is declining, and more girls are staying in school. Globally, renewable energy capacity is growing, especially in developing nations.

“These gains show that investments in development and inclusion yield results,” Guterres added.

But the challenges dwarf the progress.

Over 800 million people remain trapped in extreme poverty. Billions lack access to clean water, sanitation, and hygiene. Women continue to spend 2.5 times more hours than men doing unpaid care and domestic work. Climate change is accelerating, with 2024 confirmed as the hottest year on record—1.55°C above pre-industrial levels. Meanwhile, debt burdens are worsening: in 2023, low- and middle-income countries paid $1.4 trillion in debt servicing—draining resources needed for development.

The Secretary-General pointed to one core issue: financing. The global SDG financing gap for developing nations now stands at $4 trillion annually. Worse still, Haiti is the least-funded of all humanitarian responses globally—an example of how international priorities are dangerously imbalanced.

“There is something fundamentally wrong in the structure of the global economic and financial system,” Guterres said. “We need reforms. Debt relief. Tripling development bank lending. Fairer trade and access to capital.”

The SDG report proposes a shift toward six “transformational pathways” in food systems, energy, digital access, education, jobs, and climate. These, it argues, will accelerate progress across all other goals—if funded properly and backed by political will.

Guterres urged global leaders to use upcoming moments, including the World Social Summit (November 4–6 in Doha, Qatar), the High-Level Political Forum, and the Food Systems Stocktake, to commit to urgent action.

“The Sustainable Development Goals are still within reach,” he concluded. “But only if we act—with urgency, unity, and unwavering resolve.”

Continue Reading

Caribbean News

Haiti: Four Months from Elections, But Starving, Terrorized, and Teetering on Collapse

Published

on

Deandrea Hamilton | Editor

July 19, 2025 – Haiti is just four months away from general elections scheduled for November 15, yet the nation is paralyzed by hunger, violence, and despair. The country is facing a humanitarian disaster on nearly every front, while hopes for democratic renewal hang in the balance.

“We are on the brink of famine.” — CARICOM Communiqué, July 2025

According to the United Nations, over 5.7 million Haitians — nearly half the population — are starving. Children go days without food. Women and girls suffer horrific violence. Families are displaced. And an overwhelmed police force has all but collapsed.

Starvation and Desperation

Humanitarian agencies report families surviving on a single meal a day or none at all. In key farming regions like Kenscoff and Artibonite — once the breadbaskets of Haiti — food production has halted due to gang activity and conflict. The UN and CARICOM have both warned that parts of Haiti are “bordering on famine.”

While the UN World Food Programme has reached over 1.1 million people since January, aid workers say they’ve only been able to support 38% of those targeted for food assistance — due to underfunding, insecurity, and gang blockades.

Lawlessness and Fear

Gang violence has claimed over 5,000 lives in the past year alone. Women and girls are facing systematic abuse, from mass rapes to kidnappings. Children are being recruited into armed groups, and the elderly and disabled have been left with no protection.

UN reports show that nearly 90% of Port-au-Prince is controlled by armed groups. Less than a quarter of hospitals remain fully operational. The national police force has lost thousands of officers since 2021, and morale is at its lowest point in years.

Is the Security Mission Working?                                                                                                                                                                The Multinational Security Support (MSS) Mission, led by Kenya, was launched with global approval and promises of reinforcements. But nearly a year into the effort, only 991 personnel are deployed — less than 40% of what was pledged. Equipment and funding are dangerously low. Two bases have been established, yet gangs still rule the capital.                                                                                                                                                        CARICOM, the Organization of American States (OAS), and the Transitional Presidential Council continue to push for stability, but international response remains sluggish. Haiti’s 2025 humanitarian appeal is the least-funded in the world, with just 2% of the needed $425 million received.

Can Elections Even Happen?

Despite plans for elections in November and a new presidential transition by February 7, 2026, many Haitians are doubtful. With millions displaced, security in shambles, and widespread hunger, the feasibility of a free and fair vote is under serious question.

“We just need more money to do our work,” said a UN spokesperson this week. “The world cannot look away.”

At a Glance: Haiti in Crisis

  • 5.7M+ people starving
  • 5,000+ killed by gangs since 2024
  • 991 MSS troops deployed (of 2,500 planned)
  • 90% of Port-au-Prince under gang control
  • Less than 25% of hospitals fully functional
  • 2% of humanitarian food appeal funded

Sources:

UN Press Briefing, July 16, 2025
CARICOM Communiqué, July 8, 2025
Reuters, Associated Press, UN OCHA, Amnesty International

Continue Reading

FIND US ON FACEBOOK

TRENDING