The Latin America and Caribbean region is forecast to have a GDP contraction of 7.2% in 2020, according to the June report of the World Bank.
The Covid19 infection, contraction in global demand for the region’s exports, fall in commodity prices and reduction in domestic consumption have worsened the economic situation which was already frail. The GDP had grown just by 0.8% in 2019 after less than 2% in the previous two years. Imports and exports of the region are expected to decline by more than 10%.
Every one of the 19 countries in Latin America, without exception will suffer negative growth. Peru will have the worst of 12% while Dominican Republic will have the lowest of just 0.8%.
GDP contraction of Brazil is likely to be 8%, Mexico 7.5%, Argentina 7.3%, Colombia 4.9%, Chile 4.3% and Central America 3.6%.
The Bank has not dared to predict for the poor Venezuela whose GDP has been shrinking consistently for the last five years.
If things do not get worse, the region is likely to recover growth of 2.8% in 2021. A wild hope.
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