World Bank suggestions for regional Covid-19 response

Global epidemics and economic impact

Caribbean governments should ramp up social assistance while supporting financial sector institutions, this coming from a new report from the World Bank.

The bank is encouraging policymakers to adopt a forward-looking approach amid an expected 4.6 per cent drop in regional GDP for 2021.

The bank’s Chief Economist, Martin Rama says challenges remain among several Latin American and Caribbean countries in quote, “Protecting lives and limiting the impact of the economic fallout.”

Rama suggest coherent, targeted policies at an unprecedented level.

As the region responds to Covid-19 with closures and quarantines, the World Bank urged island governments to strike the right balance between health costs and the long-term impact on the economy.

Additionally, the bank is encouraging direct government support for important firms and sectors, alongside targeted incentives for banks to fiscally support Small and Medium-size Enterprises (SMES).