International Monetary Fund (GP)
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WASHINGTON - A sudden stop in tourism caused by border closures and lockdowns aimed at containing the coronavirus pandemic will cause a 6.2% contraction of the Caribbean economy in 2020, the deepest recession in over half a century, the IMF said on Wednesday.
In a blog on its website, the International Monetary Fund warned that lost output from firms and the high costs associated with managing local outbreaks could worsen the pandemic’s financial impact in the Caribbean, while the upcoming hurricane season posed additional risks.
It said the region has seen massive cancellations of hotel bookings and temporary resort closures, fueling unemployment, and the experience from previous crises suggested that the recovery could be delayed.
“There is also a risk that the ‘fear factor’ associated with the virus could have a long-lasting impact on tourism in the region, even after the pandemic recedes,” the IMF said. (Reuters)