Helping the Caribbean in a pandemic

(Inter-American Development Bank) Cruise ships are docked. Flights are grounded and tourists are staying home. As the coronavirus grinds the world economy to a halt, the small, open economies of the Caribbean are taking a hard hit.

The Bahamas, Barbados and Jamaica are dependent on tourism. Oil and natural gas prices are plunging, hurting Guyana, Suriname, and Trinidad & Tobago.

A recent exploration of economic scenarios gives some indication of the extent to which the reduction in tourist arrivals could impact the GDP of Caribbean countries. The worst scenario: a 75% reduction in tourism arrivals over the last 3 quarters of the year could reduce GDP by between 11% and 26% in the case of The Bahamas, with similar numbers for Barbados and Jamaica. Governments need urgent financial support.

At the Inter-American Development Bank, we are taking steps to help our six Caribbean member countries. We are increasing the availability of funds, adjusting our lending instruments, re-channeling technical assistance grants, and establishing exchange and learning platforms, to provide immediate responses to the countries’ specific demands. We are devoting our entire network of collaboration, knowledge, and dialogue to serve the regional effort combating the pandemic.

Read more at: Inter-American Development Bank