BARBADOS and other tourism dependent economies in the Caribbean could be hard hit if there is a widespread global recession brought on by the Covid-19 virus.
This is the view of Economist and former Governor of the Central Bank of Barbados, Dr. Delisle Worrell, in a commentary on the virus which is spreading across several countries after having first started in Wuhan, China.
Dr. Worrell said that the immediate impact of the virus on Barbados and the Caribbean comes from the fear and anxiety which it has caused.
He has said that Tourism is the biggest source of foreign exchange and growth for Barbados and much of the Caribbean, and that apprehension about COVID-19 has already begun to affect tourist travel.
The Economist reasoned that if the spread of the virus can be contained, losses may be temporary.
“However, in the event of widespread recession in economies worldwide, the Caribbean will not escape major losses,” said Dr. Worrell who served as Governor of the Central Bank of Barbados between 2009 and 2017.
Dr. Worrell maintained that the Covid-19 virus is a challenge to all of humanity; it is not only a Chinese problem.
Moreover, the effectiveness with which the Chinese economy recovers from the impact of the virus will benefit all of humanity. According to him, “Chinese production is already more important to global output than US production: China is the world’s largest trading nation, and its trading dominance is probably undervalued, because of the difficulty of pricing components that are produced in China for products made in the US and elsewhere.”