Beautiful Virgin Islands

Thursday, Mar 12, 2026

The pandemic’s indirect hit on the Caribbean

The pandemic’s indirect hit on the Caribbean

The region has been spared the worst ravages of covid-19. That has not protected its economies

WHEN A HIGHLY infectious disease is the biggest threat to global well-being, islands with small populations have an advantage. They can seal themselves off. The English-speaking islands of the Caribbean have by and large done this. Most have, at least until recently, kept rates of infection low (see chart). Some small islands, such as Anguilla and Montserrat, have no confirmed infections.

But that has not protected the Caribbean from the economic consequences of the pandemic. Much of the region depends on tourism, which has been hit hard. In Jamaica, which with 3m people is the most populous of the Anglophone islands, tourism accounts for 10% of GDP.



Its indirect contribution is much higher. Remittances, another big source of income, especially for Jamaica, have slumped as workers in rich countries have lost their jobs. The drop in energy prices will offset part of these losses in most Caribbean countries, which are oil importers. Trinidad & Tobago, however, depends on exports of gas.

The islands’ economies are likely to contract by a tenth or more this year. The Central Bank of Barbados, an especially prompt reporter of data, says the country’s economy contracted by 27% in the second quarter compared with the same period last year. More than a fifth of workers filed for unemployment benefit.

Governments now face an agonising choice. Should they keep their countries relatively closed to contain the pandemic, or open them back up to revive their economies, at the risk of spreading the virus? They must also watch out for the weather.

Forecasters predicted that the storm season, which runs from June to November, would be unusually active. A major hurricane would make matters far worse for any island it strikes.

The region’s economic turmoil has seemingly tranquillised its politics. Unlike New Zealand, which postponed an election due on September 19th because of a covid-19 outbreak, most Caribbean countries have stuck to their electoral schedules or even decided to vote early.

Facebook appearances and motorcades have mostly supplanted the star-studded rallies and walkabouts that bring colour and clamour to Caribbean political campaigns.

Incumbents have done well. Timothy Harris, prime minister of St Kitts & Nevis, increased his majority in June. Trinidadians re-elected Keith Rowley on August 10th. A day later Jamaica’s prime minister, Andrew Holness, hoping to extend the incumbents’ winning streak, called a snap election for September 3rd. His Jamaica Labour Party has a double-digit lead over the opposition People’s National Party (PNP), according to recent opinion polls.

That is not because Jamaica has been spared the worst of the crisis. Covid-19 struck at the peak of the winter tourism season. To shield itself, the country shut down airports. Resorts emptied.

On June 15th the government reopened airports, but that has not tempted tourists back. The tourism ministry reports 90,000 arrivals over the past two months, about 20% of normal. Many may be Jamaicans living abroad. The US State Department continues to advise Americans contemplating a trip to Jamaica to “reconsider”.

Other forms of foreign income have shrunk. Remittances in April were a tenth lower than a year before. Some call centres became centres of infection and had to close.

Banana plantations are a memory and sugar is in decline. Since March the Jamaican dollar has lost a tenth of its value against the American one. That has helped push up inflation. A journalist in Kingston, the capital, reports that the cost of his lunch has jumped from J$350 at the beginning of the year to J$450 ($3).

Mr Holness, who won by less than a percentage point in the last election, held in early 2016, seems to have persuaded Jamaicans that he is the man to pull the country out of its hole.

In 2019 Jamaica completed a six-year course of austerity prescribed by the IMF (and begun under the PNP). That held down economic growth, which was just 0.1% last year, but has left Jamaica with a cushion of foreign-exchange reserves. In May the IMF stepped back in with an emergency loan of $520m, about 3.5% of GDP.

Fossil-fuel-rich Trinidad & Tobago has large foreign-currency reserves. But most Caribbean countries have less to spend. Barbados, which is highly indebted, is shoring up its finances under Mia Mottley, prime minister since 2018, and getting help from the IMF. The Bahamas has not recovered from Hurricane Dorian, which struck last year. The IMF is helping it, too.

Governments pray for a pickup in tourism when the peak season begins in December. But their efforts to tempt back travellers may spread disease without boosting growth much. After the Bahamas reopened its airports to flights from Florida in July, the number of covid-19 cases jumped. The State Department changed its advice for the Bahamas to a stark “Do not travel”.

Jamaica’s government is trying to avoid the problem by requiring tourists to stay at their hotels or resorts. But that is difficult to enforce. Social distancing tends to break down during election campaigns. Recorded infections jumped in Trinidad & Tobago after polling day. Jamaica’s “nomination day” on August 18th, the deadline for registering candidates, brought out carousers from both parties.

Peter Phillips, Mr Holness’s opponent, is not expected to put up much of a fight. He has been treated for cancer and has had to beat off challenges for the leadership of the PNP twice since September.

His approval rating is below 20%. The prime minister called his snap poll on the same day that Joe Biden chose Kamala Harris, whose father was born in Jamaica, to be his running-mate. Jamaicans were delighted. Mr Holness hopes to be safely re-elected before voters remember how much they have to worry about.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Release of Mandelson Files Raises Tensions as UK Seeks Stable Relations With Donald Trump
UK Documents Reveal Starmer Was Warned About Mandelson’s Epstein Links Before Ambassador Appointment
Nearly Five Hundred UK Mortgage Deals Withdrawn in Two Days as Market Volatility Forces Lenders to Reprice
Three Cargo Ships Hit Near Iran as Attacks Spread to Strategic Strait of Hormuz
Why British Police Repeatedly Declined to Investigate Jeffrey Epstein’s UK Links
UK Parliament Ends Hereditary Seats in House of Lords, Closing Chapter on Centuries of Aristocratic Lawmaking
EU and UK Urge Israel to Act Against Rising West Bank Settler Violence Amid Regional Tensions
US Senator John Kennedy Says Keir Starmer Should Not Be Trusted for Military Advice Amid Iran War Debate
UK High Court Rejects Attempt to Revive Terrorism Charge Against Kneecap Rapper
Revolut Secures Full UK Banking Licence After Multi-Year Regulatory Wait
Kentucky’s Bench Boost Powers Wildcats Past LSU in SEC Tournament Opener
British Couple Die After Being Pulled From Water at Australian Beach During Family Visit
British Airways Suspends UK Repatriation Flights as Middle East Travel Disruption Deepens
US Forces Prepare Ordnance at RAF Fairford as Strategic Bombers Deploy for Middle East Operations
Nigel Farage Faces Criticism After Saying Britain Should Stay Out of Iran War
Landmark UK Trial Begins Over Sony’s PlayStation Store Pricing
UK High Court Rejects Bid to Challenge Britain’s Chagos Islands Agreement With Mauritius
Finnish Duo Triumphs in England’s Annual Wife-Carrying Race, Winning a Barrel of Ale
How U.S. and UK National Security Strategies Are Reshaping the Global Business Landscape
Green Party Gains Momentum as Labour Shifts Toward the Political Centre
Royal Navy Destroyer HMS Dragon Sets Sail for Eastern Mediterranean as Regional Tensions Rise
UK Homebuilder Persimmon Warns Iran Conflict Could Dent Property Buyer Confidence
Roman Abramovich Signals Legal Fight if UK Seeks to Seize Chelsea Sale Funds
UK Ready to Back Emergency Oil Reserve Release as Middle East Conflict Pushes Prices Higher
Study of 40,000 Articles Sparks Debate Over Alleged Anti-Muslim Bias in UK Media
US and UK Army Chiefs Strengthen Cooperation on the Future of Armored Warfare
Britain’s Search for the Next ARM Intensifies as Startups and Investors Target the Semiconductor Frontier
Three US Strategic Bombers Arrive at RAF Fairford as Iran Conflict Intensifies
Cancer Death Rates in the UK Fall to the Lowest Level on Record
UK Government Bond Yields Retreat Slightly After Sharp Spike Triggered by Middle East Conflict
UK Chancellor Warns Middle East War Could Push Inflation Higher
UK Prime Minister Warns Iran Conflict Could Drive Up Prices and Threaten Economic Stability
Trump Declines UK Offer to Deploy Aircraft Carriers to Middle East Amid Iran Conflict
Prince Harry and Meghan Markle to Return to Australia After Seven Years for Philanthropic and Business Engagements
UK Government Signals Independence From Washington as Cooper Says Britain Does Not Agree With Trump on Every Issue
UK Experts Warn AI Chatbots Are Fueling Surge in Claims of Organised ‘Satanic’ Ritual Abuse
UK Political Parties Divided Over Strategy as Iran Conflict Reshapes Foreign Policy Debate
Britain Discloses Secret Military Repair Hubs Operating Inside Ukraine
Trump Says US No Longer Needs UK Carrier Support After Delayed Offer Amid Iran Conflict
Why Britain Has Become Involved in the US-Israel Military Campaign Against Iran
UK Gas Storage Falls to Under Two Days as Iran Conflict Jolts Global Energy Markets
UK Warned to Brace for Economic Shock as Iran War Drives Global Energy Price Surge
Starmer and Trump Hold First Call After Public Dispute Over Iran Conflict
UK Dentists Returned £1.3 Billion to Government as Shift Toward Private Care Accelerates
Expert Warns UK Must Build Emergency Food Stockpiles to Prepare for Climate Shocks or War
UK Plans Charter Flight to Evacuate British Nationals from Gulf as Regional Conflict Disrupts Air Travel
Families of Zimbabwe’s Liberation Fighters Call on Britain to Help Locate Skulls Taken During Colonial War
Iran’s Ambassador Warns Britain to ‘Be Very Careful’ Over Deeper Role in Expanding Middle East War
UK Military Leadership Defends Britain’s Defensive Role in Expanding Middle East Conflict
Four U.S. Strategic Bombers Arrive in Britain as Iran War Intensifies
×