James Webb: Mitigating big economic shock

Tuesday May 26, 2020 Written by James Webb, Asian Development Bank Published in Editorials
James Webb. James Webb.

The Cook Islands Government should be commended for its proactive approach of putting large-scale support measures in place.

The Covid-19 economic crisis represents the largest economic shock since independence, and these measures will mitigate some, but not all, of the immediate impacts on businesses and households.

Tourism has served the Cook Islands well, enabling the accumulation of government reserves, a key difference versus the crisis of the mid-90s.

Tourism will likely drive growth again in the future, so limiting the size and scope of the downturn will ensure that businesses and workers are well placed to take part in an eventual recovery.

With the New Zealand and Australian borders likely to remain closed for some time, the other elements of the package encourage retooling, recalibrating, and looking at other opportunities that might emerge.

The Asian Development Bank looks forward to our continued work with Government to help assist the community and government recover as best as possible during this unprecedented time."

 

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