The International Monetary Fund (IMF) says in addition to permanent damages to public and private capital, natural disasters cause temporary losses of productivity, inefficiencies during the reconstruction process, and damage to a country’s creditworthiness.

In a study that explored the macroeconomic impact of natural disasters, the authors of the IMF Working Paper titled ‘Building Resilience to Natural Disasters: An Application to Small Developing States’ note that small developing states like those in the Caribbean are frequently hit by natural disasters that tend to leave long-lasting scars in the economy.

According to CMC news, so far this year, several Caribbean islands — Dominica, Antigua and Barbuda, the British Virgin Islands, the Turks and Caicos Islands, Anguilla and St Martin, have been devastated by hurricanes Irma and Maria.

In addition, several other countries like The Bahamas, Haiti and St Kitts-Nevis have suffered extensive damage as a result of the Category 5 storms.

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