Caribbean Economics Quarterly: Volume 11, Issue 3: Headwinds Facing The Post-Pandemic Recovery
Just as Caribbean economies are emerging from the sharp recessions associated with the COVID-19 pandemic, a confluence of external shocks now complicates the recovery. Commodity prices started rising in late 2021, and the Russian invasion of Ukraine in late February of this year disrupted supplies and led to further price increases. The macroeconomic effects are varied across the Caribbean, depending on each country's trade specialization. However, households across the region are feeling the impact on their purchasing power. In addition, the normalization of monetary policy in global financial centers is increasing the cost of external borrowing for governments, with knock-on effects for borrowing costs for firms and households. This edition of the Caribbean Economics Quarterly provides a regional overview of the impacts of these external shocks, as well as country chapters that provide more detailed country-level information.
| Summary: | Just as Caribbean economies are emerging from the sharp recessions associated with the COVID-19 pandemic, a confluence of external shocks now complicates the recovery. Commodity prices started rising in late 2021, and the Russian invasion of Ukraine in late February of this year disrupted supplies and led to further price increases. The macroeconomic effects are varied across the Caribbean, depending on each country's trade specialization. However, households across the region are feeling the impact on their purchasing power. In addition, the normalization of monetary policy in global financial centers is increasing the cost of external borrowing for governments, with knock-on effects for borrowing costs for firms and households. This edition of the Caribbean Economics Quarterly provides a regional overview of the impacts of these external shocks, as well as country chapters that provide more detailed country-level information. |
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