Covid-19 to be a wrecking ball to Latin American economies

The International Monetary Fund has forecast a grim scenario for the global economy, predicting Brazil to suffer its worst GDP fall in 120 years

Covid-19 to be a wrecking ball to Latin America economies
Empty shelves in a Peruvian supermarket. Photo: Jose Sotomayor Jimenez/Shutterstock

The International Monetary Fund (IMF) released a report predicting that the economic crisis caused by the Covid-19 pandemic is set to be the worst downturn since The Great Depression of 1929. Dubbing the coming recession “The Great Lockdown,” the fund forecasts it as being “much worse than the 2008–2009 financial crisis,” comparing it to the stock market crash of the late 1920s and 1930s which pushed U.S. unemployment to 23 percent.

As far as Brazil’s outlook is concerned, the IMF tips 2020 GDP contraction to reach an eye-watering 6.1 percent, which would be the worst annual result since 1901. With...

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