The Coronavirus Disease (COVID-19) Implication for the Global Economy
The coronavirus disease 2019 (COVID-19) has affected over 170 countries in the world due to its highly contagious nature, the length
of time it takes before symptoms are seen and the fact that not all infected persons are symptomatic which increases the likelihood of
its spread. The number of confirmed cases around the world has risen to approximately 240,000 and the death toll is rising concurrently.
Governments and businesses around the world, including in Jamaica, have been using fiscal, monetary and health care and other
measures to curtail the spread of the virus and limit the severity of the impact on the economy. Some of these measures include travel
restrictions, social distancing measures and work from home plans and quarantine zones. The cruise ship industry has halted its services
and airline traffic has been significantly reduced. This reduction in travel is putting a strain on the world’s largest revenue-generating
industry. Tourism, which accounts for ~9% of Jamaica’s GDP is expected to be severely disrupted and could see the sector shedding up
to 200,000 jobs. Restaurants and companies in the entertainment industry will also be significantly affected due to restrictions on mass
gatherings and social distancing measures. Additionally, as supply chains globally are being disrupted, companies in the manufacturing
sector that rely on imports for production inputs are likely to suffer the longer the epidemic continues.
