World Bank Predicts Unprecedented Recession in Latin America

(TELESUR) – The region’s economic activity is projected to contract by 7.2 percent, much more steeply than during the global financial crisis of the 1980s, which became known as the “Latin American debt crisis.”

The World Bank forecasts that Latin America will face the worst economic recession in a century in the aftermath of the COVID-19 pandemic. The crisis would be the worst since 1901 when financial data started to be collected.

During a webcast hosted by the Council of the Americas on Wednesday, the president of the institution, David Malpass, said that it is expected a gross domestic product (GDP) contraction of more than 7% for 2020.

The GDP is the market value of all final goods and services from a nation in a given year. It provides an economic snapshot of a country, used to estimate the size of an economy and growth rate.

According to a report released on July 1, 2020, the region’s economic activity is projected to contract by 7.2 percent, much more steeply than during the global financial crisis of the 1980s Latin American debt crisis.

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