Lost decade for Latin American economy

SANTIAGO－Latin America's economy will shrink by 9.1 percent this year due to COVID-19, the Economic Commission for Latin America and the Caribbean said in a report on Wednesday.

That would take the region back to GDP levels of 2010, something the United Nations commission called "a lost decade".

The commission downgraded its growth projections for Latin American and Caribbean countries, saying external and domestic shocks have been stronger than originally foreseen in April.

Economic activity worldwide "is falling by more than what was foreseen several months ago as a result of the crisis stemming from COVID-19, and this increases negative external effects on Latin America and the Caribbean through trade channels, the terms of trade, tourism and remittances," it said.

"The fall in economic activity is of such a magnitude that GDP per capita in Latin America and the Caribbean will end 2020 at a level similar to what was seen in 2010, meaning that there will be a setback of 10 years in income levels per inhabitant."

The commission called on regional governments to take added measures to mitigate the impact of the pandemic.

The region is currently at the epicenter of the pandemic, and while some countries have begun to lift curbs, others have had to keep them in place or even redouble them due to the persistent daily uptick in cases.

Brazil on Wednesday reported 39,924 new cases as the country's total tally inched closer to 2 million, the health ministry said.

Brazilian President Jair Bolsonaro confirmed on Wednesday that he has once again tested positive for the virus, roughly a week after he first tested positive.

Xinhua - Agencies