The growth rate in Latin America is insufficient to combat the pandemic

By Rumi Samuel Published on July 09, 2021
The growth rate in Latin America is insufficient to combat the pandemic

The Economic Commission for Latin America and the Caribbean (ECLAC) raised its regional growth estimate for 2021 to 5.2 percent but considered it insufficient to overcome the Covid-19 impact.

The briefing ‘Paradox of Recovery in Latin America and the Caribbean. Growth with Persistent Structural Problems: Inequality, Poverty, Low Investment and Low Productivity’ stated so and was presented online in Santiago, Chile.

The ECLAC study warns that such a rise does not ensure sustained growth since the social impact of the health crisis and the region’s structural problems sharpened and will continue to worsen.

In her presentation, ECLAC Executive Secretary Alicia Barcena called on countries to maintain emergency policies to strengthen a sustainable, fairer, more egalitarian, and environmentally friendly economic recovery.

Barcena deemed the policies to boost the growth of more technology-intensive sectors that generate quality jobs and the restructuring of the health and education systems.

She also called for universalizing a basic emergency income, ensuring access to a basic food basket, strengthening support for micro, small and medium-sized enterprises, and encouraging cross-cutting policies to move towards a new development model.

ECLAC forecasts an average growth of 2.9 percent in the region in 2022, which implies a deceleration concerning 2021, which, experts warn, could maintain the low growth dynamic before 2020.

Rumi Samuel

Rumi Samuel

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