Eclac predicts deep recession in Latin America by coronavirus

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Latin America is before the beginning “of a deep recession”, with a contraction of the Gross Domestic Product (GDP) the regional that will reach in 2020 to be between 1.8% to 4% for the global expansion of the coronavirus, estimated to be this Friday Eclac.

“We are at the beginning of a deep recession. We are witnessing the fall of the strongest growth that the region has undergone,” he said Alicia Bárcena, executive secretary of the Economic commission for Latin America and the Caribbean (Eclac), a technical agency of the United Nations with headquarters in Santiago.

The expansion of the coronavirus will impact with particular force to the countries of Latin america, already facing a weak economic context after the mediocre growth in 2019, of only 0.1%.

In this scenario, the decrease of the economic activity in the main trading partners of the region, the fall in the value of the raw materials and the coup in areas such as tourism, will lead the region to a fall in GDP in a range of 1.8% to 4%.

The contraction of 1.8% considers only the effects on Latin America of the economic downfall of China, the main trading partner of the region, but if you sum the economic collapse of the countries that comprise the European Union, the united States and the rest of the region, the impact will be much greater, in the range of 3% to 4%, said Bárcena.

“We are in a recession equal or worse than that of 2009”: IMF

On the 27th of march, the managing director of the International Monetary Fund (IMF), Kristalina Georgieva, said that “it is clear” that the global economy has entered “in recession, equal to or worse than that of 2009″, due to the pandemic coronavirus.

“It is already clear that we are in a recession equal or worse than that of 2009,” said Georgieva at a virtual press conference from the headquarters of an international financial institution in Washington, to assess the economic impact of the global expansion of the coronavirus.

The director of the Fund, warned, especially, of the impact that will suffer the emerging economies and for those that reached their funding needs close to $ 2.5 trillion.



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