No. 11
Special Report
COVID-19
8 July 2021
The recovery paradox in Latin America and the Caribbean Growth amid persisting structural problems: inequality, poverty and low investment and productivity I.
The economic rebound does not ensure sustained growth1
A. Structural gaps have exacerbated the adverse effects of the pandemic 1.
The worst economic contraction in over a century As of 28 June 2021, more than 1.26 million people had died from
coronavirus disease (COVID-19) in Latin American and Caribbean countries, in what is the most severe health crisis in the region’s recent history. This figure represents 32% of all deaths worldwide —almost four times that of the region’s global population share of 8.4%. Unequal access to vaccines and health services (between countries and among social groups), compounded by the emergence of new virus variants, heighten the uncertainty surrounding the future course of the pandemic and the subsequent opening and recovery of the countries’ economies.
Although unprecedented scientific and technological results have been
achieved with the development of a range of vaccines, vaccination rates vary sharply between countries, and vaccine procurement is highly concentrated in the more developed ones. As of 4 July, 46.3% of the population of the United States and Canada had been fully vaccinated, compared with 34.9% in the European Union countries, 13.6% in Latin America and the Caribbean and 11.3% worldwide (Our World in Data). The situation is also extremely uneven between countries across the region (see figure 1).
1
Unless otherwise indicated, the data used to produce this document are those that were available up to 6 July 2021.
Contents I. The economic rebound does not ensure sustained growth......................................... 1 II. Social impacts worsen and will persist into the economic recovery ...................... 19 III. Environmental deterioration continues and environmental policies suffer a setback .................................................... 26 IV. Strategy and policy proposals.................. 29 Bibliography.................................................... 38