WASHINGTON, DC, United States (CMC) — The director of the Western Hemisphere Department of the International Monetary Fund (IMF) Alejandro Werner said yesterday Latin America and the Caribbean have become the new coronavirus (COVID-19) global epicentre.
Werner said that the IMF's World Economic Outlook Update now estimates the region to shrink by 9.4 per cent in 2020, four percentage points worse than the April projection and the worst recession on record, noting that a mild recovery to plus 3.7 per cent is projected in 2021.
In his 'Outlook for Latin America and the Caribbean: An Intensifying Pandemic', the IMF official warned that countries should be cautious in reopening their economies and allow science and data to guide the process.
“With tourism coming to a virtual standstill and key source markets in advanced economies plunging into deeper recession, the region is likely to experience a very sharp and protracted contraction in economic activity.
“Of the 70 loans approved since the pandemic began, totalling US$ 25 billion, 17 were for countries in the region, for a total of US$ 5.2 billion,” he said, adding “we stand ready to use the IMF's financial clout, policy advice and capacity development resources to help Latin America and the Caribbean achieve a stronger recovery”.
