Strikes on Iran: Economist predicts negative impact for Jamaican economy

Economist Keenan Falconer believes the current turmoil in the Middle East, following the US-Israeli attacks on Iran could have a negative impact on Jamaica's economy.

 

Mr Falconer is expecting some inflationary pressures arising from the conflict.

 

He told Radio Jamaica News that there could be increases in the price of oil and agricultural inputs due to the war.

 

Noting that "the price for a barrel of oil has already risen," he predicted that this "will filter into energy and fuel prices."

 

"Agricultural inputs, which are also in transit, have also been in transit, and these have been disrupted, and given that the volatile components of food and fuel account for most of Jamaica's imported inflation, then this could potentially have an impact."  

 

Mr Falconer explained that the instability in the Middle East could disrupt supply chains, "and even if the disruption is only temporary, given the instability in the region, and how everythig will unfold, and how this development might materialise, insurance costs for safe passage of ships  will go up, and traversing (alternative) routes will be more costly."

 

Price pressured will therefore "be very prevalent and they might filter into all elements of the supply chain," he added.