Answer to Question #211388 in Macroeconomics for Catherine Melita

Question

Question: Discuss in the context of any one of the South Pacific Island countries the following: Use data analysis and or graphs where applicable. 

Answer 1

The covid 19 pandemic has affected the global economy, and the South African Pacific Islands are no exception. For example, a country like Fiji, the largest country among the south African Pacific Island country was affected. Fijis GDP declined from 5.5 billion US dollars in 2019 to 4.32 billion US dollars in 2020. This was accelerated by the drop in exports and tourism demand. Unemployment also increased from 4.2 percent in 2019 to 4.8 percent in 2020 because companies had to lay off workers due to economic disruptions. However, inflation was -2.6 percent in 2020 because of the reduced prices of goods and services.