A historic blow to the Latin American economy. The region’s gross domestic product will decline this year by 9.1%, the largest decline in 120 years, according to data from the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) (United Nations).
In one year Latin America will lose the equivalent of “a decade in economic terms.” And about a decade and a half in societal terms, ”says the entity. Per capita GDP will fall by 9.9% to the levels they were a decade ago, and the poverty rate will rise seven points to 37.7%, the highest rate since 2006. On its part, the unemployment rate will rise to 13.5%.
By country, Venezuela will once again lead the declines, by 26%. In Peru, the economy will contract by 13%. In Argentina is 10.5%; In Brazil 9.2% and in Ecuador and Mexico 9%.
Venezuela, Peru and Argentina will lead the GDP declines this year
In terms of per capita income, the largest decline will be in South America, with a decrease of 9.4%, followed by Central America and Mexico at 8.4%. The coronavirus infection was particularly difficult because the crisis occurred when many economies in the region were already at low hours.
Nine out of twenty countries in Latin America ended the first quarter in decline, and eight in slowdown. this will be “The strongest economic and social crisis in the region Over several decades, it highlights the structural weaknesses of the economies, “says the Economic Commission for Latin America and the Caribbean in the data it collects. Country.