The International Monetary Fund (IMF) says Caribbean countries could face mixed economic impacts from ongoing global conflict, particularly depending on whether they are energy importers or exporters.

Responding to questions about the potential effects on small, import-dependent states on March 19, IMF Director of Communications Julie Kozack said early indications point to differing outcomes across the region.

“For countries that are energy importers, they may face, if the conflict is prolonged, pressures on their balance of payments,” she said.

“For countries that are oil exporters, their balance of payments may improve because of higher prices. So, we may see a differential effect there,” Kozack added.

She also warned that broader global financial conditions could impact all countries, including those in the Caribbean.

“Changes to global financial conditions are likely to affect all countries,” she said, noting that tighter financial conditions could have widespread consequences.

Kozack added that the IMF is closely monitoring key economic indicators in the region, particularly for countries heavily dependent on tourism and remittances.

“For countries that are very tourism dependent, we will be, of course, monitoring carefully how tourism flows evolve,” she said.

“Similarly, for countries that are very dependent on remittances, we will also need to look carefully at remittances,” she added.

Her comments came as Caribbean governments have already begun taking steps to mitigate the impact of rising fuel prices on their populations.

In Antigua and Barbuda, the Government has announced plans to freeze the price of gasoline at EC$14.50 (EC$2.70 = US$1) per gallon and diesel at EC$14.25. Authorities there have also introduced broader cost-of-living measures, including increases to the minimum wage and public sector salaries.

In the United States Virgin Islands, Governor Albert Bryan has instructed government agencies to implement fuel conservation measures as part of efforts to manage the impact of higher energy costs.