SEATTLE, Washington — Developing countries that were already in the state of socio-economic despair are now taking on the challenge of higher unemployment rates and a loss of tourism. Overall, they are predicted to see around $220 billion in income loss. Support from international countries is currently limited, and the virus is worsening already defective health systems. For many, facing the “10% chance of dying” from exposure to the virus outweighs the possibility of starvation from staying at home. Despite projections of a fast decline in annual GDP, certain successful business strategies are providing hope for global markets during COVID-19. Many developing countries depend on manufacturing, agriculture and small businesses. Several nations are adapting quickly to support economic growth in these sectors.
Vietnam Containing the Virus
Vietnam is making a come back in Southeast Asia. By being proactive in fighting the virus, Vietnam has had no fatalities as of early June. Even though there are limited tests and a lack of healthcare workers, the country has successfully carried out affective quarantine practices. As predicted, thousands of jobs closed. However, governmental measures saved the country and its economy. Donations and managing cash flow through the State Bank of Vietnam have supported the economy so far. With an expected economic growth around only 1.5%, Vietnam will still dodge recession compared to neighboring South East Asin countries.
Managing its fiscal and monetary policies has also been effective in stabilizing the economy. The government will also be providing a stimulus similar to the United States’ approach and modifications towards interest rates and taxes. The annual GDP for the remainder of 2020 is projected to hit by 6.09% if the country can get COVID-19 under control by the second quarter. Successful business strategies are primarily supporting the manufacturing sector, including food processing and small and medium businesses. The country is slowly progressing its economic status. In fact, the industry sector is expected to grow by 7.1%, with the services sector growing by 6.47%.
Jamaica’s Socio-Economic Support
Jamaica is using direct and indirect measures to improve its economy. The country took immediate steps to respond to the early breakouts of the virus. It lowered tax rates as well as fixed prices on medical supplies. Like Vietnam, the country is receiving billions in liquidity and making affordable policies with their banking systems. The government of Jamaica has set a stimulus package of $25 billion to support the economy.
The country is also providing stimulus measures and a COVID Allocation of Resources for Employees (CARE) program. The program involves temporary funds for small businesses to run through the Jamaica Tourist Board. Grants are also going toward those with lower-incomes. The Ministry of Industry, Commerce, Agriculture and Fisheries is aiding farmers. Fresh produce from the agricultural sector is moving to online markets through trade with more than 400 farmers.
Honduras’ Businesses Flexibility
Successful business strategies have aided the economy in Honduras. Concentrating on improving healthcare and support for unemployment is a top priority. The World Bank provided Honduras $119 million to boost the economy. The organization Pure Water for the World (PWW) is providing safe water, sanitation and hygiene education in more than 125 vulnerable communities. Right now, the organization is continuing its projects. Karla Vargas, PWW Health Promoter, also created PWW face masks for the Trojes team.
Small and Medium Enterprises (SMEs) benefit the Honduran economy tremendously, so the country granted tax contributions of 0.5% of the country’s GDP. Bank Banhprovi has lifted debts to numerous banks to help the construction industry as well. Furthermore, President Hernandez pipped millions into the economy to provide and protect thousands of jobs and push online access to improve business services.
The Honduran Transforming Market Systems (TMS) is working vigorously to keep companies resilient. JJ-Agro created the first hydroponic strawberry production unit at the beginning of the year and needed aid from Pyflor and Yojoa Trading Company to sell the first harvest of strawberries. Selling these products boosted the economy and saved many individual’s jobs. Yojoa Trading Company also successfully launched online sales and delivered fresh produce with the help of Sube Latinoamérica. Businesses of all sizes attended online training sessions to gain knowledge of online transactions. Almost 20% of companies are adjusting during the crisis by changing their initiatives to selling products and services online.
The virus originated in China, but it is now slowing down due to strict safety measures. Case numbers have stabilized, and other nations can take notes on the country’s economic recovery. The IMF predicts economic growth of 1.9% for the remainder of the year and 9.2% for 2021.
Successful business strategies in China are helping manufacturers to overcome adversity. Along with $7 trillion investments, reducing the costs of products and strengthening supply chains have been vital. China is adding more Foreign Invested Enterprises (FIEs) to the mix so the country can depend on more than one supplier. At least $80 billion in loans are given to businesses that need additional help. Local governments are implementing policies to improve leadership in the workforce and enhance access to advanced digital technology. Medical programs online, such as Ali Health and Tencent Healthcare, have been assisting citizens with COVID-19 screenings and treatment.
Nations all over the globe are adopting policies to mitigate this virus’s economic impact. Some countries are maintaining their financial losses by utilizing successful business strategies that benefit small farming companies as well as large manufacture powerhouses.
– Sydney Stokes