Caribbean economies face rising costs, job losses and potential instability as global conflicts disrupt energy supplies, Vice President Bharrat Jagdeo warned on Wednesday.
Speaking at the 124th Special Meeting of the CARICOM Council for Trade and Economic Development (COTED), Jagdeo said the ongoing war involving Iran, Israel and the United States was already affecting countries worldwide and would soon impact the Caribbean.
“In less than a month, we have instability already in some countries and riots. We have a loss of welfare, higher cost of living in many countries, devastating populations,” he said.
Jagdeo warned that governments were being forced to divert funds away from development to subsidise fuel, while economic output was expected to decline.
“We’ve already seen a diversion of funds from development into subsidising fuel… we are going to definitely lose economic output,” he said.
He added that shortages of oil and gas would ripple through key industries, including aviation and tourism, both critical to Caribbean economies.
“It’s going to affect the airline industry, affect sectors like tourism, and soon it will come close to the region… and we lose jobs,” Jagdeo said.
The vice president also highlighted the region’s long-standing vulnerability due to high energy import costs, noting that some Caribbean countries spend more than 10% of their gross domestic product on fuel.
He urged regional leaders to focus on practical solutions, including reducing energy costs through renewable investment, strengthening climate resilience and protecting biodiversity.
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