The World Bank projects a GDP fall of 4.6% in Latin America
Mexico and Ecuador will be the most affected countries in 2020 and recovery is expected to start in 2021
The World Bank released this Sunday the 2020 projection in relation to the drop in GDP in Latin America, according to which a collapse between 1.8% and 5.5% is expected, assuming the greatest economic crash in the region.
These historical records would leave behind the decline of 2.5% in 1983 in the midst of the debt crisis in Latin America, considered a trigger for the first lost decade and that of the Great Recession in 2009 where regional GDP barely decreased by 1.9 %.
Among the Latin American countries the most affected could be Mexico and Ecuador, both with a decline of 6%, followed by Argentina (-5.2%), Brazil (-5%) and Peru (-4.7%). Nations like Chile (-3%) and Colombia (-2%) will not be as affected and only the Dominican Republic and Guyana will be free from the recession.
Nonetheless, by 2021 the World Bank forecasts a recovery of 2.6% and although this can be considered an encouraging scenario, the board still remains full of uncertainties.
The fastest resurgence is expected to occur in Andean countries such as Peru, which will grow by 6.6%, Colombia by 3.4% and Ecuador by 3.2%. If this forecast is positive, all the aforementioned countries will be able to close the gap opened in 2020 in just 12 months.
K.Villarroel
Source: elpais
