Economics

World Bank Sees Latin America Shrinking 4.6% in 2020

  • Governments should take on burden of losses to protect jobs
  • Measures are needed to shield most vulnerable, report says

An empty street stands next to residential buildings on Easter Sunday in downtown Sao Paulo, Brazil April 12.

Photographer: Rodrigo Capote/Bloomberg

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Gross domestic product in the Latin America and Caribbean region, excluding Venezuela, is expected to shrink 4.6% in 2020, according to the World Bank.

The dramatic drop in demand from China and G7 countries due to the Covid-19 pandemic is affecting commodity exporters in South America and exporters of manufactured goods and services in Central America and the Caribbean. A collapse in tourism is also severely impacting some countries in the Caribbean.