Finance and the Public Service Minister Dr Nigel Clarke has conceded that Russia’s war against Ukraine may impact the global economy and critical projections made by the Government in the 2022-2023 Budget.

The Government had forecast that the average price of oil for the new financial year would be US$67.5 per barrel, a projection that might have to be reviewed based on the implications of the Ukrainian crisis.

In addition, the Ministry of Finance and the Public Service might have to go back to the drawing board and make adjustments to its five per cent inflation target for the 2022-2023.

Clarke told members of Parliament’s Standing Finance Committee on Tuesday that the Bank of Jamaica had indicated that inflation would be elevated in the short term but was expected to moderate towards the end of the financial year.

“With the war that is under way in Ukraine and with the impact that is likely to have on commodity prices, at least in the short term, it is quite possible that inflation could be higher than this assumption,” Clarke said.

He noted that the average 12-month US$67.5 per barrel forecast was made prior to the crisis in Ukraine.
The finance minister told his parliamentary colleagues that the impact of the war in Ukraine was likely to be felt through various channels, including a spike in commodity prices.


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