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What is the impact of COVID-19 on Latin America?

French version :

FINETUDES.AM LATINE.FR
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English version :

FINETUDES.AM LATINE.ANG
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The Covid-19 health crisis has sharpened the economic crisis already impacted by the economic recession in Latin American countries. The contraction of economic activities, particularly in Argentina, largely due to the drop in household consumption, forced politicians to renegotiate the terms of their debts and consequently limit the deterioration of the rating by rating agencies to support the economy. Moreover, their lack of attractiveness to investors accentuated by political and trade tensions also affected by Covid-19 did not help the situation: higher inflation, higher market interest rates, depreciation of national currencies and increased social inequalities, lower oil prices as well as higher unemployment are the main negative effects on the economy of Latin American countries resulting in a downward revision of their GDP growth. As a result, the financial support of policies to curb these effects is widening the fiscal and budgetary deficit already impacted by tax evasion. To curb these crises, governments have respectively put in place exceptional measures such as tax relief, legal labour relief, allocation of financial aid and opening up the domestic market to private investors. This exceptional health crisis has profoundly changed the behaviour of Latin American governments and opened up new horizons of resilience to the economic crisis.

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