Bharath: This disease can hurt TT

Former trade minister Vasant Bharath said the coronavirus outbreak in different parts of the world can affect TT economically.

But Bharath added people in TT must use this virus as “a word to the wise” and as a lesson against “putting our eggs in one basket.”

To date, Bharath said the outbreak is concentrated in four transmission complexes. These are China; East Asia (centred in South Korea and Japan); the Middle East (centred in Iran); and Western Europe (centred in Italy). “In total these affected areas represent nearly 40 per cent of the global economy,” he observed. Bharath said as countries grapple with coronavirus, movement restrictions will be imposed in an attempt “to stop or slow the progression of the disease.” He said economic sectors such as aviation, tourism and hospitality are likely to be the hardest hit.

In the case of TT, Bharath said these three sectors could suffer a lower than normal rate of visitors over the next six months. He added that other sectors could see delayed demand as customers put off spending on items they do not need. But Bharath said these customers will eventually buy these items “once the fear subsides and confidence returns.”

Bharath said TT currently buys about $4 billion worth of goods, raw materials and consumables from China, where the outbreak began. He explained that because of the drastic measures taken by the Chinese government to deal with coronavirus, “It is likely that the Chinese market will bounce back to near normal by the end of the third quarter (of 2020).”

Given the relatively quick economic restart in China, Bharath said, “Companies should focus on temporary stabilisation measures rather than moving supply chains out of China.” He also said TT imports approximately $6 billion worth of food annually and a significant percentage of that comes from North America.

Bharath said a slowdown in economic growth there “will necessarily result in a curtailment of supplies.” He also said it is possible there could be a reduced demand for TT’s exports to the US and Europe as a result of slowed and delayed demand.

Supermarkets Association of TT president Rajiv Diptee said there is ample food supply in TT and the public has nothing to fear. He said there is a demand for cleaning supplies such as toilet paper and hand sanitisers, as people are heeding advice to safeguard themselves against covid19. Diptee said the association will continue to monitor the situation as it develops.

(See Page 5)