Small economies usually feel it first.
When global oil prices increase, the first thing people notice is higher gasoline prices.
But the real impact runs deeper.
Fuel is embedded in almost every part of the economy:
• transportation
• electricity generation
• shipping and logistics
• food imports
• construction materials
That means an oil shock rarely stays in the energy sector.
It spreads through the supply chain.
Higher fuel costs increase transport costs.
Higher transport costs increase import prices.
And in import-dependent economies like Curaçao, higher import prices eventually become higher retail prices.
This is how an energy shock quietly turns into a cost-of-living shock.
The real challenge for policymakers is not predicting these shocks.
It is preparing for them.
How do you think small island economies should prepare for rising global energy prices?
drs. Luigi A. Faneyte MSc. CFE CICA CCS
Politician | Economist | Financial Expert | Consultant | Auditor | Analyst | Researcher | Lecturer
Former Auditor of the Court of Audit
Parliamentary Staff Member of the PAR in the Parliament of Curaçao