WASHINGTON - Countries in Latin America and the Caribbean will likely see “no growth” in the decade from 2015 to 2025 due to the coronavirus (COVID-19) pandemic and other recent economic issues, said the International Monetary Fund (IMF).
“It’s not only this shock; it’s the cumulative negative shock that the region will have gone through in the decade going from 2015 and 2025,” said Head of the IMF’s Western Hemisphere Department Alejandro Werner as quoted by Reuters, Thursday (16/4).
“On average, our expectation is that it is highly likely that in the decade from 2015 to 2025 there will be no growth.”
As forecast in the IMF’s 2020 World Economic Outlook, the economy of Latin America will likely contract 5.2% as COVID-19 cases continue to mount. According to Mr Werner, the IMF is currently processing requests for emergency assistance from 16 countries, about half of which are in the Caribbean.
Latin American and Caribbean countries, said Mr Werner, is facing the worst economic recession since the 1950s. At present, the IMF is planning to analyse a US$70 billion debt restructuring proposal announced by the Argentine government on Thursday. (MS)