Latin America's GDP Expected to Fall in 2020 Due to COVID-19

The COVID-19 pandemic will cause a sharp drop in Gross Domestic Product (GDP) growth in Latin American and Caribbean countries in 2020, according to the World Bank.

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A new report by the international organization estimates that the drop in GDP in the region will be 4.6%.

The decrease will occur due to the impact that the pandemic has had on the world economy. Millions of people have lost their jobs, have been forced to stay at home and cancel trips abroad.

The economy has also been hit by social tensions and the collapse in international oil prices.

The countries most impacted by the decline in GDP will be Mexico and Ecuador, whose economies will see a 6% drop, according to the new report.

Argentina follows with a loss of 5.2% of GDP, followed by Brazil (5%), Peru (-4.7%), Bolivia (-3.4%), Chile (-3%), Uruguay (-2.7%), Colombia and Panama (both -2%).

The only two countries in the region that will be impacted are Guyana, where oil production will drive GDP growth to record levels of 51.7%; and the Dominican Republic.

For World Bank Chief Economist Martin Rama, "Latin American and Caribbean governments have two huge challenges: protecting lives while limiting economic impacts," he said.

These times demand coherent policies, he concluded.