Madrid, Jan 19 (Prensa Latina) The economic recovery of Latin America after the impact of the Covid-19 pandemic will be partial and uneven, according to a study published by the Circle of Latin American Studies.
The Circle considers that this is the emerging region most affected by the pandemic, both in health and economic terms, so its economic recovery will have these characteristics, depending largely on the fiscal balance of the countries to support their economies.
This reflexion was a result of an analysis of the situation made by the Crédito y Caución ('Credit and Caution') insurance company, which stated that the effects of Covid-19 are devastating for Latin America.
It is suggested that the informal economy and high demographic density, added to the decrease in the demand for goods and services, produced a reduction in the prices of basic products and limited access to financing, worsening the situation.
The contraction for 2020 was 7.7 percent, and the recovery in 2021 will also be below that average.
The Vice President of Knowledge of the Development Bank of Latin America, Pablo Sanguinetti, agreed for his part that the regrowth after the pandemic will be a slow one, a process in which GDP growth could be diminished by lower private investment, the deterioration of the human capital and increasing informality rates.
mh/llp/jha/crc
This reflexion was a result of an analysis of the situation made by the Crédito y Caución ('Credit and Caution') insurance company, which stated that the effects of Covid-19 are devastating for Latin America.
It is suggested that the informal economy and high demographic density, added to the decrease in the demand for goods and services, produced a reduction in the prices of basic products and limited access to financing, worsening the situation.
The contraction for 2020 was 7.7 percent, and the recovery in 2021 will also be below that average.
The Vice President of Knowledge of the Development Bank of Latin America, Pablo Sanguinetti, agreed for his part that the regrowth after the pandemic will be a slow one, a process in which GDP growth could be diminished by lower private investment, the deterioration of the human capital and increasing informality rates.
mh/llp/jha/crc
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