RIO DE JANEIRO, BRAZIL – Credit Suisse projected a 1.5 percent contraction in Latin America’s gross domestic product (GDP) in 2020 due to social distancing efforts to contain the coronavirus and the “rapid decline” in commodity prices.
According to the bank, all countries in the region are expected to suffer both supply and demand shocks due to supply chain disruptions and quarantine efforts, which are expected to continue for a “considerable” portion of the first half of the year.
The bank has reviewed growth projections for Argentina‘s economy from -1.0 to -2.6 percent and expects “notable slowdown” in household consumption, investment, and exports in the country.
“Economic activity is likely to be affected by poorer global growth, lower demand from China and a weaker Brazil,” wrote analysts Alonso Cervera, Juan Lorenzo Maldonado, Alberto J. Rojas, and Leonardo Fonseca, who sign the Credit Suisse report to clients.
Source: Exame