As for Brazil, the forecast is even worse–a contraction of 5%–, according to a new report, entitled The Economy in the Time of Covid-19, which is being disclosed this Sunday.
For Mexico and Colombia, the forecasts are for a decrease of -6% and -2%, respectively.
The forecast is even more dramatic than the contraction of 1.8% to 4% projected earlier this month by the U.N.’s Economic Commission for Latin America and the Caribbean (ECLAC).
According to the entity, to help the vulnerable face the loss of earnings from the lockdown, existing social protection and social assistance programs should be rapidly scaled up and their coverage extended.
The World Bank also stressed that the coronavirus pandemic is fueling a major supply shock. “Demand from China and G7 countries is falling dramatically, affecting commodity exporters in South America and exporters of manufactured goods and services in Central America and the Caribbean. A collapse in tourism is severely impacting some countries in the Caribbean”, reports the institution.
The entity also said that, due to this scenario, is taking “broad, fast action to help developing countries strengthen their pandemic response, increase disease surveillance, improve public health interventions, and help the private sector continue to operate and sustain jobs”.
And it’s doing this by deploying up to $160 billion in financial support over the next 15 months.