Covid-19 in Latin America and the Caribbean: Regional socio-economic implications and policy priorities
Most Latin American and Caribbean countries have been hit by the Covid-19 crisis in the context of low potential growth, high inequalities and rising social discontent. Policy reactions to the crisis have been bold, but further measures will be needed. In the immediate term, the priority must be to prevent contagion and support most vulnerable families, workers and firms. In the phasing out of the containment and lockdown measures, continued income support to stimulate consumption and support inclusiveness, as well as investment efforts to promote activity are fundamental to spur a swift economic recovery. In the medium term, the aftermath of this crisis must be turned into an opportunity to redefine the social pact, putting well-being at the centre, based on stronger social protection systems, better healthcare, more robust and inclusive public finances and implementing inclusive development strategies. Co-ordinating a global response to address the impact of the Covid-19 crisis in the region remains vital.