Finance Minister Dr. Nigel Clarke has stated that it is likely the coronavirus will affect the government’s economic growth projections.

Dr. Clarke spoke on the possibility while opening the Budget Debate in the House of Representatives on Tuesday.

The growth projections were included in the fiscal policy paper tabled a month ago in the House, but Dr. Clarke said things have since changed as the health concern from the coronavirus could weaken global demand which could lead to a fall in commodity prices and a reduction in global growth, disruption in supply chains, reduction in travel and tourism and cause an interruption in financial flows.

Dr. Clarke said with the government now reducing its primary surplus target, it was important to look at the growth projections in light of the coronavirus.

He said the government might have to lower the growth forecast, especially for the medium term. However, he stressed that this decision has not yet been made.

Dr. Clarke on Tuesday announced a $7 billion contingency fund for the coronavirus as well as a $2 billion advance to the Health Ministry to help with its response to the virus.

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