OPINION – The future economy of the Caribbean

(Barbados Today) Many Caribbean economies find themselves already in a difficult situation with low growth, high debt, fiscal deficits, and low domestic private sector investments. Because of the current developments around the spread of the Novel Coronavirus around the world, economies worldwide will be dealing with an unforeseen shock. While action is taken to contain and mitigate the outbreak, a global recession is likely, and the Caribbean will also be affected. Global recessions are known to have an impact over a two-year period. Now is the time to be prepared for what comes thereafter.

Caribbean Travel Marketplace, January 23, 2020: “The record-breaking feats made by the Caribbean in 2019 are expected to continue into 2020, the Caribbean’s two major tourism advocacy organisations, the Caribbean Hotel and Tourism Association (CHTA) and the Caribbean Tourism Organisation (CTO), have predicted,” a media report reads.

Yet, predictions don’t always square with reality. Now, about two months later, one would consider these statements to be euphoric and one would tend to believe to have been in the wrong film. It is hard to believe in another boom year; on the contrary, a looming recession is more likely with all its consequences for the island economies, but especially the communities. Someone who still preaches: “Don’t worry everything will be alright” is not realistic. Surrealism is an art form and not a form of socio-economic development. Whenever these kinds of comforting phrases are used, they should be placed under the sub-category, “Social work in the economy”.

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