The International Monetary Fund has issued a warning to the Caribbean to brace for the impact from the fall out of a retraction or even recession in the US economy. Murilo Portugal, the IMF's Deputy Managing Director said a recession in the United States would almost certainly have a significant impact on Caribbean economies. One area where this is most likely to be felt is tourism which accounts for over sixty per cent of the economic activity of members of the Organisation of Eastern Caribbean States. Mr Portugal also cautioned about a possible reduction in foreign direct investment. He suggested that there is a real possibility of a recession in the US within the next two years. Mr Portugal said Caribbean countries should prepare for that by continuing to broaden their tax base, introduce value-added taxes, and improve their overall fiscal situation, especially debt reduction and management. Reprinted from bbccaribbean.com