No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeTopicsLatin AmericaLatin America pandemic recovery lagging, IMF says

Latin America pandemic recovery lagging, IMF says

Latin America’s recovery from the pandemic crisis is lagging the rest of the world and the economy will not return to its pre-pandemic level until 2024, the IMF warned Thursday.

The persistent health crisis caused by Covid-19 remains a concern, and though growth has accelerated, helped by stronger recoveries in trading partners, the region will need a “short-term shot” of support, said Alejandro Werner, head of the International Monetary Fund’s Western Hemisphere Department.

The region’s economy contracted by 7.0 percent in 2020, “the sharpest in the world” and far exceeding the global economy’s slowdown of 3.3 percent, Werner said in a blog post.

Regional growth is expected to rebound by 4.6 percent, below the 5.8 percent estimated for other emerging markets excluding China, according to the latest regional economic outlook.

“Income per capita will not catch up with its pre-pandemic level until 2024, resulting in a 30 percent cumulative loss relative to the pre-pandemic trend,” Werner said.

Poverty is estimated to have increased by 19 million people, and inequality also rose, with women and low-educated workers struggling the most, according to the report.

“The pandemic will also leave long-lasting damage to human capital from school closures, which were longer than in other regions,” he said.

Werner said governments with sufficient resources should continue to support programs for their economies, while those with tight budgets “should reprioritize spending towards healthcare and support for households, and work to create additional fiscal space.”

Massive US stimulus plans have helped support manufacturing in Mexico, and likely will give a boost to Central American economies as well, he said.

But the recent resurgence of the virus in Brazil, Chile, Paraguay, Peru and Uruguay, combined with slow vaccine rollouts in most countries except Chile, “cast a shadow on the near-term outlook.”

In the Caribbean, tourism-dependent economies “will be the last to recover (only in 2024) due to the slow resumption in tourism,” Werner said.

Trending Now

Costa Rica Embraces IHRA to Combat Antisemitism in Region

Costa Rica has formally adopted the International Holocaust Remembrance Alliance's (IHRA) working definition of antisemitism. This step positions the country as the sixth in...

Honduras Reinstates Mask Mandate Amid Rise in Respiratory Illnesses

Honduran health officials have reinstated a nationwide mask mandate following a spike in respiratory illnesses, including COVID-19, flu, and a fast-spreading Omicron subvariant known...

Keylor Navas Leads Pumas to Victory in His Liga MX Debut

Keylor Navas kicked off his Mexican league journey with Pumas UNAM in style, leading the team to a 2–0 win over Querétaro at Estadio...

Can Costa Rica’s Blue Zone Preserve Its Longevity Legacy?

The Nicoya Peninsula in Costa Rica is recognized worldwide as one of the five blue zones, where people live beyond the age of 90...

A Costa Rica Expat and the Devil on His Shoulder

Everyone has a dark side—that little devil in your conscience that says, go ahead and do it! even though you know it’s wrong. It...

Chiquita Executives Convicted in Colombia for Financing Death Squads

Colombian justice on Wednesday sentenced seven former executives of the multinational banana company Chiquita Brands to more than 11 years in prison and a...
spot_img
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica