Economic impact of Covid-19 in Latin America assessed

The crisis caused by the Covid-19 pandemic caused in Latin America a loss of the value of the main currencies, historical inflation rates, deepening of informal economic activities and higher public debt

Economic impact of Covid-19 in Latin America
Economic impact of Covid-19 in Latin America

This is an economic impact that many experts consider is far from fading away, as the recovery in the region is experiencing enormous inequality despite the fact that many governments promote the idea that evidence of recovery is overwhelming.

The reality is that Latin America is experiencing what specialists describe as a rebound in economic activity after an abrupt fall, such as the reactivation after a recession, such as the one experienced as a result of the pandemic.

According to the Economic Commission for Latin America and the Caribbean (ECLAC), the region will end up 2021 with a 5.9 percent growth, after a drop of 6.8 percent in 2020.

This estimate bases growth mainly on external demand and the increase in the prices of the commodities and raw materials that they export. Countries like Venezuela, Panama, and Peru fell at the highest rates, while others like Paraguay, Guatemala, and Nicaragua emerged well from the crash.

The forecast of an increase in the Gross Domestic Product (GDP) was only visible beginning since the first half of 2021, when many restrictions began to give way and vaccination generated the confidence of a return to normality.

Vulnerability also increased compared to 2019: eight out of 10 people live with an income up to three times the poverty line.

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