How will COVID-19 Affect Economies of Latin America & the Caribbean?

Credit: UNDPBy Luis Felipe López-CalvaUNITED NATIONS, Mar 12 2020 (IPS) History shows that in Latin America and the Caribbean, volatility is the norm and not the exception and that the development trajectories of their countries are not linear. The region has significant links to China, economic relations have skyrocketed in recent decades, particularly through trade, foreign direct investment, and loans. The COVID-19 outbreak is a new potential source of volatility and a threat to the macroeconomic stability of Latin America and the Caribbean. While it is still too early to fully understand its impact on China’s growth, and how it will result in a slowdown in our region, what we know so far is that COVID-19 is spreading at an accelerated rate and has caused a disruption to China’s economy. The virus has spread to more than 117 countries, with more than 117,335 confirmed cases. It is very likely that the impact on China’s growth and commodity prices, besides, represents a shock to our region. Latin America and the Caribbean have significant links to China, economic relations have skyrocketed in recent decades, particularly through trade, foreign direct investment, and loans. Trade with China increased from US$12 billion in 2000 to US$306 billion in 2018 and is already the second trading partner. Three years ago, it represented nine percent of total Latin American exports and 18.4 percent of total imports. It is not the same in all countries, but, for example...
Source: IPS Inter Press Service - Health - Category: International Medicine & Public Health Authors: Tags: Economy & Trade Featured Global Headlines Health Latin America & the Caribbean TerraViva United Nations Source Type: news