COVID-19 grants stimulating the economy -Dr. Singh
Senior Minister in the Office of the President with responsibility for Finance, Dr Ashni Singh says the $25,000 COVID-19 relief cash grant has stimulated the economy substantially.
Speaking with DPI today, Dr Singh noted the grant was strategically implemented by the Government, first to alleviate the hardships households faced due to the pandemic, and then as a stimulus for the economy.
“When they receive this grant, they then use that grant to buy goods and services. They are then able to go to the market and they buy some groceries, whether it is a little bit of fruits, vegetables, some rice, some flour, some meat. They are able to go to the market and spend that money in the market. So, it generates a little bit of economic activity in the market,” the Minister said.
This spending then creates a ripple effect, significantly impacting the economy.
Dr Singh continued, “the market vendors, in turn, are able to pay their supplier and that multiplies itself over and over, many times in the economy. And so, an injection of this nature has tremendous positive multiplier effects in the economy because it generates the consumption that it stimulates at the household level, then feeds into the retail trade and that then feeds into the wholesale trade and that then feeds into production.”
Dr. Singh said while the disbursement has already had a positive impact on the economy, the shock of the limitations of the pandemic remain.