Jamaica in robust position to absorb external shocks – Clarke
FEARS OF spiralling oil prices on the international market, owing to escalating tensions in the Middle East and the likely impact this could have on Jamaica’s economy, are being assuaged by Finance and the Public Service Minister Dr Nigel Clarke who says that the country is now in a position to absorb external shocks.
There were reports yesterday that oil prices had increased to their highest levels since 2014 after Saudi Arabia, which has the world’s largest crude oil production capacity, intercepted missiles over Riyadh, the country’s capital. At the same time, there were jitters in the market after United States President Donald Trump warned Russia of imminent military action in Syria. Russia has close ties to the Bashar al-Assad regime of Syria.
While Syria is not a significant oil producer, signs of escalating conflict in the already troubled region could trigger concern about crude flows across the wider Middle East. Washington and its allies have been considering air strikes following a suspected poison gas attack last weekend.
In a Gleaner interview yesterday, Clarke noted that Jamaica was mindful of international developments in the Middle East that could have an impact on the Jamaican economy.
“The good news is that we are in a robust position to absorb external shocks,” Clarke told The Gleaner following his inaugural address as finance minister at a Labour Market Forum at the Terra Nova Hotel in Kingston.
“Our reserves at the Bank of Jamaica are at extremely high levels. In fact, some of the highest levels ever,” he added.
According to Clarke, the country had access to a $1.6 billion facility to which it has not made a drawdown under the International Monetary Fund’s Precautionary Stand-By Agreement. Further, Clarke said that the country’s energy security was improving as the Government’s policy to diversify away from its dependence on oil was bearing fruit.