World Bank
Why Smaller States Been Hit So Hard by Economic Shocks – World Bank Experts
The recently released January edition of this year’s Global Economic Prospects report warns that the global economy is dangerously close to a recession, with worldwide economic output projected to be just 1.7% in 2023.
While the outlook for all economies is quite grim, the edition takes a special focus on the plight of 37 small states—countries with a population of 1.5 million or less—that are already vulnerable to shocks stemming from the pandemic, climate change, disruptions to tourism and more.
Dana Vorisek, senior economist and one of the lead report authors of the Global Economic Prospects report, the Hon. Tiofilusi Tiueti, Minister for Finance and Tonga World Bank Governor; and Anna Kay, a female-owned restauranteur in Jamaica, share their insights and experiences to the impacts of a worsening global economy on already vulnerable states.
Dana Vorisek, Senior Economist, World Bank Group, said, “The main reason small states were really hard hit by COVID was tourism. People were fearful of traveling, but also these countries shut their borders for a long time.”
Hon. Tiofilusi Tiueti, Minister for Finance and Tonga World Bank Governor, also stated, “The impact of climate change is obviously reflected on the frequency and intensity of a natural disaster, which further impacted our primary sector for economic development.”
For Anna Kay, a female-owned restauranteur in Jamaica, “We can’t get a lot of the things that we used to get, brands that we used to get before, or supplies that we used to get. The biggest thing is the cost of things.”