HomeNewsCosta RicaNews briefs: World Bank expects recession in Latin America due to COVID-19

News briefs: World Bank expects recession in Latin America due to COVID-19

The coronavirus pandemic has impacted daily life in Costa Rica, which has declared a State of Emergency and enacted sweeping measures to slow its spread.

Here’s what you need to know today:

World Bank predicts Latin American recession

The World Bank predicted that the effects of the global crisis caused by COVID-19 will plunge Latin America into a recession with a contraction of regional GDP of 4.6% in 2020.

The economic forecast is compounded by meager growth in previous years, protests in 2019 and a fall in oil prices.

“A growth return of 2.6% is expected for 2021,” the World Bank estimated in a statement released Sunday.

It warned that this year there will be a recession in the main economies in the region, with a contraction of 5% in Brazil, 6% in Mexico and 5.2% in Argentina.

The blow will also be felt in Colombia, where GDP will is predicted to fall 2%; in Chile, where the contraction will be 3%; and in Peru, with a fall of 4.7%.

“The governments of Latin America and the Caribbean face the enormous challenge of protecting lives and at the same time limiting economic impacts,” said Martín Rama, the World Bank’s chief economist for Latin America and the Caribbean.

Rama summarized the situation as “dire” and noted that a response will require “targeted and consistent policies on a scale rarely seen before.”

In Central America, Costa Rica — whose economy was in relatively good health — will have an expected economic contraction of 3.3% this year; Nicaragua will deepen its crisis with a 4.3% drop in GDP; and Honduras could fall into crisis with a 2.3% retraction.

This section was adapted from an AFP story by Ariela Navarro. 

Canadian government offers financial support

Canadian citizens living abroad can apply for an emergency loan to facilitate their return to Canada and to cover basic essential needs, the country’s government has announced.

The repayable loan is meant for Canadians who “have no available source of funds to return home.”

To apply, Canadian citizens should contact their nearest Government of Canada Office. Contact information for the Embassy of Canada in San José is available here.

Air Canada has suspended flights to Juan Santamaría International Airport (SJO) near San José until at least April 30, while Air Transat and WestJet have suspended operations to Costa Rica until further notice, according to the airport.

Second U.S. repatriation flight offered

The April 17 repatriation flight from Costa Rica to Houston is sold out, according to the U.S. Embassy.

However, the Embassy indicated Tuesday that it has coordinated with United Airlines to offer a flight on Monday, April 20. The flight will depart Juan Santamaría International Airport (SJO) at 12:00 p.m. and arrive in Houston (IAH) at 4:46 p.m. 

Payment and booking should be completed with United Airlines.

Costa Rican citizens can book the flight from IAH to SJO via United Airlines and should contact the airline’s regional office for assistance if needed.

Trending Now

Costa Rica Begins Rebuild of the Airport Serving Quepos/Manuel Antonio

Work began on a $13.4 million upgrade of the Quepos airport near Manuel Antonio, adding room for nine small aircraft now and a new passenger terminal by 2028.

Costa Rica Unveils New ₡100 Coin Celebrating Limón Calypso

Costa Rica is paying tribute to one of its most distinctive musical traditions with a new ₡100 coin celebrating Limón calypso, a genre deeply...

Costa Rica Through A Canadian’s Eyes: More Than Just Pura Vida

It has been nine years since I made the move from Canada to Costa Rica, and I often find myself asking a simple question:...

Costa Rica Study Reveals Key Coastal Habitats for Endangered Giant Manta Rays

Researchers tracking endangered giant manta rays in Costa Rica have discovered that younger animals remain close to coastal habitats while adults travel across international waters. The findings could help guide future marine conservation efforts.

Power Failure Disrupts Costa Rica’s Juan Santamaría Airport Control Tower

A power failure temporarily knocked out critical air traffic control systems at Costa Rica’s Juan Santamaría International Airport today, raising new concerns about the...

How to Save on Dental Implants in Costa Rica and Get the Best Treatment – A Win-Win!

Dental implants are a life-changing investment in your smile, health, and confidence—but they don’t have to break the bank. At Prisma Dental, we’ve helped...

Brazil’s Luisa Stefani Wins Wuhan Open Title and Takes Lead in WTA Doubles Race

Brazil's Luisa Stefani and Canadian partner Gabriela Dabrowski captured their sixth doubles title of the 2026 season on Sunday, defeating defending champions Storm Hunter...

Study Finds Costa Rica’s Pesticide Use More Than 10 Times Global Average

Costa Rica uses pesticides on its farmland at a rate more than ten times the global average, according to a scientific study that raises...

JetBlue First Class Is Coming to Three Costa Rica Routes This Winter

JetBlue's BlueFirst first class reaches Liberia Dec. 26 and San José Jan. 5. Here is what the new cabin includes.
Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel