2020 First Quarter: GDP Decreased By 2.8%
After adjusting for inflation, the GDP in constant prices decreased by 2.8% in the first quarter of 2020, which has been largely attributed to the effects of the Covid-19 pandemic, with the Minister noting that while all the business closures helped to contain the spread of the virus, they led to declines in consumption.
Minister for the Cabinet Office Wayne Furbert said, “After adjusting for inflation, the GDP in constant prices for the first quarter decreased by 2.8 percent. This decline in GDP is largely attributable to the onset of the Coronavirus [Covid-19] pandemic.”
The Minister continued, “It’s clear that Covid-19 is wreaking havoc on the economic and financial plans that countries around the world had prior to the pandemic. In our region, Finance Ministers have had to become extremely innovative in order to: satisfy new demands for financial assistance; ensure there are funds to execute the normal functions of Government; and be poised to stimulate an economic recovery.”
The Minister added, “Efforts to reduce the spread of the Covid-19 pandemic in the first quarter included the closure of the L.F. Wade International Airport, bars, nightclubs, cinemas, gyms, schools, restaurant dine-in services, and non-essential retail.
“Businesses switched to working remotely and curfew hours were implemented. These efforts helped to contain the spread of the virus but led to declines in consumption, gross capital formation as well as a fall in receipts from the exports of services.”
Chart extracted from the report:
Highlighted below are the year-over-year changes in the quarterly GDP components:
- Household final consumption decreased 4.0 per cent.
- Government final consumption decreased 5.9 per cent.
- Gross capital formation decreased 8.4 per cent.
- The external balance on trade in goods and services increased 1.7 per cent.
The full Quarterly Gross Domestic Product publication follows below [PDF here]:
“Minister for the Cabinet Office Wayne Furbert said, “After adjusting for inflation, the GDP in constant prices for the first quarter decreased by 2.8 percent. This decline in GDP is largely attributable to the onset of the Coronavirus [Covid-19] pandemic.”
What utter rubbish. The airport did not shut down until 21 March, 10 days before the end of the first quarter. The Proclamation of a State of Emergency and consequent lock down did not happen until April – that is AFTER the end of the first quarter.
Try again please, Minister.
So, what we’re actually saying is that the 2.8% decrease in the first quarter is SOLELY down to the PLP and its attempts at governance.
I shudder to think what the 2Q results will be. Given that we’re now already well into the 4th quarter, I wonder how long they will be delayed for?
Some comedian will come back with 30-6
First of all I always supported the OBA but frankly speaking I didn’t vote this last election like many of us. Supporters like you and you’re spin are the very reason we only won 6 seats. From January 1st, 2020 folks started to prepare.
That isn’t spin. It is the truth. The airport didn’t close until March 20th and shelter-in-place (ie lockdown) didn’t happen until after the quarter end (April 4th). No one started to prepare from January 1st. That is nonsense.
You know what else isn’t spin is the dismal GDP numbers for the last two quarters of 2019. Explain those then. And unfortunately for you, you can’t hide under the Covid defense.