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The forecast for 2020 is for a drop of around 8%

MADRID, 8 (EUROPA PRESS)

The coronavirus pandemic and its resulting economic crisis will cause several Latin American economies to follow a « fragile and very gradual » recovery path, given their structural limitations and the scarce existing margins to adopt additional stimulus policies, in such a way that, according to the most recent forecasts and for many of the economies, activity levels prior to the health crisis would not recover until 2022, according to a report published by the Bank of Spain.

The analysis details that the collapse of economic activity has occurred despite the fact that the economic authorities responded to the pandemic in a « quick and forceful » way, from a fiscal and monetary point of view, being in most cases responses from greater magnitude than those observed during the financial crisis of 2008.

Specifically, the Gross Domestic Product (GDP) of Latin America registered a fall of more than 14% in the second quarter of the year, with notable variations between countries such as Peru, which contracted more than 27%, or Brazil (-9, 7%), in the framework of the coronavirus pandemic and its adverse impacts on the region’s economy.

Thus, the governments of Brazil, Chile, Colombia and Peru have deployed fiscal measures equivalent to a range that oscillates between 7% and 12% of GDP, while, on the other hand, Argentina and Mexico have resorted to this type of action to a lesser extent.

Regarding monetary policy, the report points out that the central banks of the region have cut interest rates to historical minimum levels, in addition to adopting measures to support bank credit, supply of liquidity in local and foreign currency and the establishment of of asset purchase programs.

« The negative impact on economic activity in Latin America from the Covid-19 pandemic has been very intense in recent months, which has led analysts to project in 2020 a GDP contraction of an unprecedented magnitude since there is data available « , apostille the text.

The forecast is for a drop of around 8% in 2020, more severe than that registered in 2010 (between -2% and -3%).

The authorities of some countries on the continent, in an environment in which some recent stabilization seems to have been observed in the rate of spread of the pandemic, have begun to ease containment measures, says the Bank of Spain. Thus, the region’s main economies can be expected to register positive growth rates in the coming quarters.

However, the report adds, these forecasts are subject to a « notable degree of uncertainty » about the future evolution of the pandemic, both in Latin America and in the rest of the world, and about the severity of the activity restriction measures. that may need to be reintroduced in different countries.

The team will coordinate research and development efforts, access, acquisition, use, health regulation, pharmacovigilance, evaluation and monitoring.

The team will coordinate research and development efforts, access, acquisition, use, health regulation, pharmacovigilance, evaluation and monitoring.

The team will coordinate research and development efforts, access, acquisition, use, health regulation, pharmacovigilance, evaluation and monitoring.

The team will coordinate research and development efforts, access, acquisition, use, health regulation, pharmacovigilance, evaluation and monitoring.

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