Radical solutions needed to save TT

THE EDITOR: In June the International Monetary Fund projected that the world economy would contract by 4.9 per cent. Two-thirds of the world's governments borrowed US$11 trillion in June alone. The IMF forecasts that the global economy will lose US$12 trillion in 2020 and 2021 due to the pandemic.

The world is beginning to reopen but the rate of infection is increasing in the US, Brazil and India, which collectively produces over 20 per cent of global GDP. A major concern is the US which accounts for 26 per cent of infections worldwide, according to John Hopkins University.

The US is the number one consumer nation, so if it is stumbling economically because of covid19, the world economy suffers.

The majority of remittances and tourists to TT comes from the US, our number one trading partner. TT’s economic needs have increased since the covid19 pandemic because of increased medical costs, increased unemployment relief and other government assistance, and a decrease in government revenue.

The opening of the economy in a measured way is a start but more than that is required. The IMF forecasts that TT's economy will contract by 4.5 per cent. This spells hard times for many people who are faced with less income and higher prices.

TT has had two IMF deals and both the people and the Government are skilled at dealing with economic hardship. This time it is different however. The global downturn is severe and unusual so TT will have to make a lot more internal adjustments with less international assistance.

A committee needs to set up that can come up with innovative and radical solutions. Systemic changes are needed. If the country treats this situation like the other economic recessions it has been through, the results will be dire. Never has the world been so heavily indebted – and experiencing a pandemic simultaneously.

BRIAN ELLIS PLUMMER

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