Monday, May 22, 2006

High Oil Prices Could Trigger Caribbean Crisis

High energy prices could prompt political and economic crises in Caribbean countries, particularly in those juggling with financial imbalances.

Helena Hessel, a senior analyst with Standard and Poor's is quoted in a Caribbean Media Corporation story predicting a regional political and economic fallout: “Apart from the impact on the balance of payments, in a number of countries in the Caribbean, like Grenada, Belize and Jamaica, where socio-political issues are somewhat difficult, if gasolene prices continue to rise, the impact would be negative."

From Hessel’s point of view only two countries would be spared from such a trend: Surinam and Trinidad and Tobago. They both have sound finances.

A regional crisis would strengthen even more Hugo Chavez’s influence in the Caribbean.


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