Coronavirus: disease could lead to poverty for 29 million people in Latin America

Coronavirus: disease could lead to poverty for 29 million people

A few Latin American countries have announced their own methods of radical renewal, but apparently they will not be enough. As he had to give up economic activities nearby caused him, an increase of not only 4.4% poverty rate and 2.5% higher incidence. In short, the poverty hole will be sucking up about 29 million people.

The bloom of previous years in terms of unemployment rates will surpass 2020, rising from 186 million poor in 2019, to 214.7 million this year, with this total, with the poorest people coming from 67,5 million. -83.4 million.

It is a repercussion of the 5.3% cut of GDP which is a defining factor for a region that has closed a five-year period of slower growth for more than half a century. “Since 2014, the region has grown by 0.4%. Starting this disaster is going to create a very difficult situation for us “, this is how ECLAC’s executive secretary, Alicia Bárcena, warned at a forum with the media from Santiago de Chile.

Through the fall of international trade, one of the channels is being transferred due to the hurricanes coming from overseas. The price of Latin American exports will decrease by 15%, as will the trade volume, which will be determined by 6%. It is trapped in economic activity in China that contributes to the economy exporting raw materials, such as Brazil, Peru, Chile and Uruguay, as more than 20% of its products are exported to Asia.

It is true that in several Latin American countries they have disclosed stricter renewal of their measures, including tax relief and guarantees of access to credit. However, the agency estimates that it will not be enough. “It is not enough with what they are doing and they will need more funding,” warned Alicia Bárcena.

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