Economic Concept Paper | The Potential Economic Impact of Covid-19
Since its emergence, COVID-19 has become the dominant threat to the global economy. As at the time of writing, the WHO estimates that, cumulatively, more than 110,000 people have been infected in at least 110 countries and territories. China is considered to be the epicentre of the outbreak, and is the region with the most reported confirmed cases (in excess of 80,000 people). To curtail the transmission of the virus, Chinese authorities locked down cities, restricted movements of millions and suspended business operations. These measures are expected to have a negative impact on the rate of growth of the world’s second largest economy which, while harmful to China’s economy in isolation, we believe is likely to have negative global economic implications.
However, as the virus has now become a pandemic event, and has spread to regions including Europe, North America, the Caribbean, etc., is it likely that other countries, even without the influence of a slowdown of the Chinese economy, respective economies is likely to be negatively impacted due to the pandemic event. It is our opinion the threat the virus poses to economies steams from its disruptive potential. In this brief thought piece, it is our intention to explore in a concise and easily understandable manner the likely impact of the COVID-19 on the Jamaican economy.