The Strategist

UN declares record drop in Latin America's GDP in 2020

12/17/2020 - 04:37

In 2020, GDP in Latin America and the Caribbean will show a record fall of 7.7% in 120 years, with 3.7% growth expected in 2021, says the UN Economic Commission for the region (CEPAL).

Christian Haugen
Christian Haugen
"GDP in Latin America and the Caribbean is expected to fall by 7.7%, which is the largest decline since studies began in 1900," the commission said in its report.

The largest declines are expected in Venezuela (-30%), the Caribbean islands (15 to 18%), Peru (-12.9%), Argentina (-10.5%), Ecuador and Mexico (-9%). The largest economy in the region, Brazil, will contract by 5.3%.

According to experts, the pandemic has brought external shocks to the region's already low-growth economy, while measures of social distance, various restrictions and company closures have led to a deep economic, social and production crisis.

"Growth in the region is projected to recover in 2021 by an average of 3.7%," the report notes. Only Venezuela's economy is forecast to fall (by 7%), while the rest of the countries are expected to grow - Brazil by 3.2%, Mexico by 3.8% and Argentina by 4.9%," the report notes.