IMF boss warns of tough times ahead

Wednesday, February 13th 2008

TRINIDAD EXPRESS

The International Monetary Fund has issued a warning to all citizens of Caribbean countries to brace themselves for the upcoming economic fall-out which will come with the pending US recession. According to the fund's website reports, IMF managing director, Murilo Portugal said last week a recession in the United States would have a significant effect of the economies and day-to-day life in all Caribbean states. He said, "Of course a slowing down of the US economy has a significant impact, for instance on tourism." While on his most recent visit to the Caribbean which ended yesterday, Portugal also cautioned that a decrease in foreign direct investment will come along with the recession. He said, "In addition to tourism the other factor by which the Caribbean can be affected is through foreign direct investment which is important to the region as it provides them with a lot of their cash flows, especially in the construction industry."