Social Distancing could trigger layoffs at some businesses

A desolate Regent Street earlier in March 

President of the Georgetown Chamber of Commerce and Industry (GCCI) Nicholas Degoo-Boyer is fearful that the current global Coronavirus pandemic can devastate Guyana’s economy. In an invited comment on Saturday, the GCCI executive sought to give a description of the current situation in Guyana.

GCCI President: Nicholas Degoo-Boyer

“Businesses in the local economy are already in a nail-biting position” Boyer noted as he pointed to the COVID-19 disruptions to the global supply chain given that other countries across the world have placed halts to inward and outward movements at their ports, affecting essential products in the process. “For those countries that are still exporting, factories have increased their prices” Boyer continued.

Guyana being a country which depends heavily on imports, businesses such as pharmacies and supermarkets are already beginning to face challenges in restocking shelves.

In order to cope with high factory prices, some of the above-named establishments have already begun raising their own prices for certain items that are in high demand, Boyer noted.

Continuing his description of the effects of the coronavirus on the local economy and businesses, Boyer noted that as Guyanese consumers continue to largely practice social distancing, this move which he regarded as necessary; is also proving to be a nightmare for retailers.

He described it as a nightmare for the retailers who are still saddled with ensuring continued employment for individuals even as sales are continuing to dwindle rapidly.

“So what you have now is that businesses are paying higher prices for products and maintaining more staff than their sales would call for at this time, a tough position to be in from all sides”. Boyer noted that in order for some businesses to remain afloat, there will have to be layoffs and or cutting of salaries.

In Europe where businesses are being assisted to keep employees, Boyer is of the view that Guyana should consider a similar approach to reduce the potential of higher unemployment and persons being placed on the breadline.

Boyer is of the firm belief that while the government seems willing to help the country’s business sector, it is restricted given that the power to spend is not there; a direct result of our present election, political debacles.

He reminded that this is hard as Guyana does not have a Parliament at the moment to approve key funds that can help safeguard the local economy.

“It’s a hard pill swallow” Boyer noted while noting that the current political turmoil and the economic effects can be far worse than other countries in the region.

Before the Coronavirus hit the world by storm, Guyana was projected by the IMF to be the fastest growing economy in the world for 2020 with an expected growth of 86%.