(Eyewitness News) NASSAU, BAHAMAS — The Latin America and the Caribbean region will experience a contraction of -7.7 percent in 2020 but will have a positive growth rate of 3.7 percent in 2021, due mainly to a statistical rebound that will nonetheless be insufficient for recovering the economic activity levels seen prior to the coronavirus pandemic, the Economic Commission for Latin America and the Caribbean (ECLAC) indicated in its most recent report.
ECLAC released its Preliminary Overview of the Economies of Latin America and the Caribbean 2020 — one of the United Nations (UN) organization’s flagship annual reports — during a virtual press conference given by ECLAC Executive Secretary Alicia Bárcena.
According to the document, in a context of global contraction, Latin America and the Caribbean is the region in the developing world that has been hardest hit by the crisis stemming from COVID-19. In the decade prior to the pandemic, the region was on a low-growth trajectory, and in 2020 it faces an unprecedented combination of negative supply and demand shocks, which is translating into the worst economic crisis in the last 120 years.
The Caribbean in particular is seen contracting by -7.9 percent in 2020 and growing by 4.2 percent in 2021, according to ECLAC’s projections.