Latin America's economy will take years to recover after Covid-19

Essential productive activities in Latin America will take several years to fully recover since all economies in the region are experiencing a recession time derived from COVID-19.

Analyses predict that these economies will end up in 2020 as the world’s worst affected by the pandemic.

Moody's Analytics Director Alfredo Coutiño stated to Xinhua that the most damaged areas will be tourism, commodities trade, and each country’s general industries, especially those highly dependent on imported inputs.

"The most affected will be those more vulnerable in both the public health system and economy, including Brazil, Mexico, Argentina, Peru, Ecuador, and Central American countries," Coutiño said.

Less than a month ago, the International Monetary Fund (IMF) predicted a 9,4 percent shrink in Latin America. Nevertheless, experts estimate that the region's GDP could shrink by 9 to 10 percent this year, dragged down by falls in Brazil and Mexico, whose economies represent about 60 percent of the regional output.

The Economic Commission for Latin America and the Caribbean (ECLAC) forecasted the closure of some 2.7 million companies, which would mean the loss of 8.5 million jobs over the next six months.