Several Latin American countries have announced their forceful reactivation measures, but apparently they might not be enough.
The situation we are experiencing thanks to the coronavirus will leave Latin America with consequences. The GDP (Gross Domestic Product) of the region will fall an estimated 5.3% in 2020 and can be the worst crisis in its history, consistent with an analysis by the Economic Commission for Latin America and therefore the Caribbean (ECLAC) regarding the impact of the coronavirus published this Tuesday as reported by the newspaper El País.
Having had to prevent economic activities threatens to cause, in turn, a rise of 4.4% within the poverty rate and a couple of .5% within the incidence of utmost scarcity. In summary, this poverty hole will absorb almost 29 million people.
The jump of previous years regarding unemployment rates are going to be exponential this 2020, from 186 million poor in 2019, it'll attend 214.7 million this year, within this figure, we've people living in extreme poverty who they're going to go from 67.5 million to 83.4 million.
It is the repercussion of a contraction of 5.3% of GDP is that the definitive action for a neighborhood that has just closed the five-year period of slowest growth in additional than half a century. “Since 2014, the region has grown at averages of 0.4%. the start of this crisis will create a really delicate situation for us ”, this is often how the ECLAC secretary , Alicia Bárcena, warned at a news conference from Santiago de Chile.
Through the autumn in international trade, one among the transmission channels for the turbulence will come from abroad. the worth of Latin American exports will decrease by 15%, as will the quantity of trade, which can contract by 6%. it's the halting of economic activities in China the actual blow to the economies that sell raw materials, like Brazil, Peru, Chile and Uruguay, with quite 20% of its exports to Asia.
It is true that several Latin American countries have disclosed their forceful reactivation measures , including tax relief and credit guarantees. However, the agency estimates that they're going to not be enough. “It isn't enough with what they're doing and that they are getting to require more financing,” warned Alicia Bárcena.
I have written only about poverty rate about Latin America but if we see in other countries i.e. Asia and Africa, poverty rate is increasing at very much high rate.
If proper management of resources is not done and Corona not controlled then how much people die and how much gets effected ,they become out of control.
I pray to God forgive our sins and save us from this deadly disease.