assessment of the socio-economic and environmental impact

sectors are estimated to be positively impacted by the effects of the hurricane. The Construction
& Installation sector is expected to benefit from reconstruction activity. An expansion in activity
in the Distributive Trade sector is predicated on projected higher gross sales associated with
preparations prior to the hurricane and reconstructive work in the aftermath of the passage of the
hurricane.
Prior to Hurricane Dean it was projected that inflation would be contained within the single digit
range of 7.0 per cent – 9.0 per cent. Given the hurricane and the influence of other global events
projections have been revised. It is now anticipated that inflation for calendar year 2007 will
fall between 9.0 per cent – 10.0 per cent. For the remainder of year, inflation impulses are likely
to be derived from:
• a shortage of domestic food crops, resulting from the impact of Hurricane Dean on the
agricultural sector;
• higher prices for meat and poultry due to increased international grain prices and supplyside
restrictions for beef. The marine sub-sector was also affected by the passage of
Hurricane Dean;
• increased international crude oil prices, driven by tight supplies in the US given the
closure of several refineries in the path of Hurricane Humberto. It is also expected that
concerns about the effect of the Atlantic Hurricane season on the Gulf of Mexico could
affect supplies and by extension, prices.
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