economic growth

The impact of the pandemic on the latin american economy

Vie, 10/30/2020 - 11:51 -- anegrete

The stoppage of economic activities, caused by the covid1 pandemic, seriously affected Latin American economies during the first semester of 2020, 8 years of production were lost.

On average, Latin America lost eight years of production, while China lost only one, the United States six and the European Union 11. China, Europe, Argentina, Colombia, Bolivia, Ecuador, El Salvador, Honduras, Paraguay, Peru and the Dominican Republic imposed mandatory quarantine.

The economic outcome of the infection prevention policies has been strongly determined by the economic growth of the last decade. When economic dynamics are low, the fall, driven by the closure of internal and external economic activities, causes a large contraction measured in terms of years of product. If the dynamics are high, a large fall leads only to a low reduction in production.

Coronavirus, a greater risk to the world than to China

Lun, 03/16/2020 - 11:56 -- anegrete

On December 31, 2019, the coronavirus (COVID-19) appeared in Wuhan, China. While this explains the speed of the stock market fall, it is not enough to explain why it resembles the experience of the 2008 - 2009 crisis.
The impact that has been presented cannot be understood without understanding the importance of China in global value chains. China is the source of 5 branches of the world economy: pharmochemistry, automotive, aeronautics, electronics and telecommunications.
What is certain is that the uncertainty about the dynamics of the real economy has impacted on the expectations in the stock markets and on economic growth in the world. The reactivation of production, whenever it occurs, will be slower than the previous dynamics.

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