Latin America’s economic plight is getting worse

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Latin America’s economic plight is getting worse
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  • 📰 TheEconomist
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As the pandemic slows in Europe, it is surging in the Americas. Governments will struggle to find the money to prop up their economies

91% of intensive-care beds in hospitals are occupied even as cases of covid-19 soar. The city has declared a four-day public holiday to reduce travel. In poorer parts of Brazil, such as Fortaleza and Manaus, hospitals are even fuller. Much the same goes for Peru and Mexico. In Chile, which seemed to have been controlling the coronavirus, a sharp rise in cases and deaths saw the government lock down greater Santiago and left the health minister “intensely worried”.

Start with public health. The lockdowns did reduce the spread of infection in April, according to Jarbas Barbosa of the Pan American Health Organisation . But economic pressures, and in Brazil and Mexico mixed messages from presidents, have led many people to flout the lockdowns. Traffic in the region’s biggest countries is back up to almost half of normal, according to the Inter-American Development Bank .

in April suggested that 57% of small businesses have shut down temporarily, while nearly 45% of respondents said a household member had lost a job. Countries such as Brazil, Chile and Peru have implemented three-month emergency income schemes. But getting the money to informal workers is hard .

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