The COVID-19 pandemic has done more than ravage Latin America’s economies; it has highlighted two pervasive and chronic structural weaknesses. Addressing them must be a key component of recovery efforts throughout the region.
BOGOTÁ/BUENOS AIRES/LONDON – The recession that Latin America is now confronting as a result of the COVID-19 pandemic is not a typical economic slump. This year, output across the region will be 10% lower than was forecast in late 2019, joblessness is in double digits, and nearly 15 million more people will now have to endure extreme poverty. Two decades of progress in reducing poverty and inequality are at risk. With living standards collapsing, the wave of social unrest experienced before the pandemic is likely to return.
BOGOTÁ/BUENOS AIRES/LONDON – The recession that Latin America is now confronting as a result of the COVID-19 pandemic is not a typical economic slump. This year, output across the region will be 10% lower than was forecast in late 2019, joblessness is in double digits, and nearly 15 million more people will now have to endure extreme poverty. Two decades of progress in reducing poverty and inequality are at risk. With living standards collapsing, the wave of social unrest experienced before the pandemic is likely to return.