In a study published on Monday, the Association of Overseas CCIs (ACCIOM) warns that “overseas businesses should be more affected by the crisis than their metropolitan counterparts”. And if the latter did not find "normal activity until September 1," the economic impact, already very heavy, "will double", warns the association.
The economic consequences of confinement overseas “will probably be felt for the next ten years”, alerted the Association of Overseas CCIs on Monday, which estimates at “60.000” the number of jobs threatened in these territories .
According to this study, overseas have experienced on average “a loss of turnover of around 12 million euros per day of confinement”. Depending on the geography, these losses range from 5 million euros (Guyana) to 24 million euros (Reunion.
Companies more affected than in metropolitan France
“Overseas businesses should be more affected by the crisis than their metropolitan counterparts”, analyzes ACCIOM, because of “the relatively greater contribution of local services (trade, services to businesses and households) to market GDP”.
"Urapid recovery by 2023 and sustained until 2025 (in order to absorb the losses) assumes extremely vigorous growth but which appears beyond the reach of most ”, the study continues.
According to ACCIOM, “the scale of the crisis could be much greater if the full restart of activities does not take place until September”. This would translate into “a doubling of the losses recorded” during containment, and a decline in GDP around “10% over the year”.
Companies more affected than in metropolitan France
“Everything must be done to accelerate the recovery”, judges the association, which considers “a real blow”, especially for the tourist sector, the traffic restrictions maintained for the moment in overseas, and calls for “Proactive and large-scale actions in favor of household consumption”.
It suggests, for example, a “targeted reduction in income tax and / or social security contributions payable by employees”, “an increase in public transfers benefiting certain households”, but also “the establishment of a negative interest rate on sight deposits beyond a certain ceiling ”to encourage households to quickly consume accumulated savings, or even a“ fall in prices ”.
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