Inflation and high cost of living pose serious threat to vulnerable population, governance reformer warns – Eye Witness News

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NASSAU, BAHAMAS – Rising global inflation due to the war between Ukraine and Russia and the resulting supply chain disruptions will have “serious implications” for the country’s vulnerable population, warned yesterday a governance reformer.

Hubert Edwards, chairman of the economic committee of the Organization for Responsible Governance (ORG).

Hubert Edwards, head of the economic development committee of the Organization for Accountable Governance (ORG), said Eyewitness News that bAccording to recent IMF projections, inflation will rise to 5.7% for developed countries and emerging markets such as the Bahamas at 8.7% and global growth will fall to 3.6%.

“This continuing circumstance, the war, together with the expected COVID lockdowns and supply shock from China, will cause prices to continue to rise, especially for food and energy. serious implications for the vulnerable segments of the country and therefore the government must pay particular attention to this direction,” Edwards said.

“While it looks like this may be dragging on, there is little the government can do other than reduce tariffs, taxes and duties on goods, with these savings being passed on to the consumer. The challenge is that the government is not in the best position at this time to make such adjustments, given the country’s fiscal situation.

He continued: “We have so far observed a level of hesitation in this regard on the part of the administration and it is understandable. The government needs all the revenue it can muster to get the best results in the next budget cycle. But this is likely a catch-up position 22 given that as this inflationary event drags on, there will be a greater need for increased social support. This, however, might be more preferable for the government as it leaves the fiscal measures intact. »

Edwards noted that there is heightened but justified public concern about the cost of living.

“As far as the relevant audience goes, there are a lot of good reasons,” he said.

“The cost of fuel/energy is rising, the cost of food is rising rapidly, unemployment is still high and wages are not growing commensurately. Consumers should therefore start making personal financial adjustments early, whenever possible. Discretionary and other expenses should be carefully reassessed and reduced according to individual circumstances. »

Edwards said: ‘Government could consider implementing a public education campaign with a series of very effective public service messages encouraging people to be careful with their finances, to use means of savings such as carpooling , to become more aware of how to save energy. etc This could prove valuable to the community and the country. I would encourage all of us to take a long-term view of the current circumstances and start thinking concretely about what changes can be made and ensure survival.

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