Even Tougher Times Looming For Jamaica
Consumers island-wide are being told to brace for higher prices as the Jamaican Dollar continues to weaken.
Chartered Accountant Dennis Chung and Financial Analyst Ralston Hyman said the coupling of the Jamaican Dollar continuing to slide and the uncertainty in the economy due to no IMF agreement will result in increased inflation.
The Jamaican Dollar ended trading yesterday at $99.15 to One US Dollar.
Mr Hyman explains that when the dollar slides it takes an additional 15 to 20 billion dollars in order to service the national debt.
This in turn he says will mean that the government will have to transfer resources from other uses such as wages and salaries and spending on peoples programmes.
Like Mr Hyman, Dennis Chung believes an IMF agreement is essential in stabilizing the dollar.
Mr Chung explains that consumers will feel the effects of higher prices especially in the purchase of items outside of basic foods.
Both men agree that consumers must be frugal in their spending and borrowing.
Mr Hyman says conserving on energy and reducing the number of imported goods are just a few of the things consumers can do to lessen the effects.
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