The expanded facility includes both a one-time temporary coverage of COVID-19 given the unprecedented magnitude of the present outbreak, and a longer-term ex ante coverage for future pandemics and epidemics. The expanded facility seeks to improve countries’ public contingent liabilities management. For the COVID-19 pandemic outbreak, countries can request up to $90 million or 0.6% of GDP, whichever is less. Beyond the present outbreak, countries can request coverage for future public health emergencies for up to $100 million or 1% of GDP, whichever is less.

The Inter-American Development Bank (IDB) approved a budget support loan to El Salvador of $250 million to strengthen the efficiency and effectiveness of public policy and fiscal management to address the health and economic crisis caused by COVID-19.

The program supports the introduction of temporary measures to protect the income of vulnerable households and to increase the liquidity of firms during the health and economic crisis, among which the allocation of a monetary contribution to low-income households, suspension temporary payment of domiciliary services, and the postponement of the payment of taxes for certain groups of companies and shops.

The contraction responds to the continuation of a downward trend that began in early 2019, when exports from the region declined by 2.2 percent, and to the first effects of the economic crisis triggered by the COVID-19 pandemic.

The downturn in global demand hit the region through both the price and volume channels, according to the latest edition of Trade Trend Estimates for Latin America and the Caribbean.

El programa priorizará el apoyo a la sostenibilidad de las MIPYME agropecuarias y su cadena de valor como sostén del empleo frente a la crisis, y con foco en la seguridad alimentaria. De igual forma, el programa también podrá financiar a otros sectores relevantes que hayan sido afectados por la crisis actual.

Crédito de apoyo presupuestario de us$250 millones contribuirá a financiar los esfuerzos del país para hacer frente a los efectos sanitarios y económicos de la pandemia del covid-19.

El crédito también contempla compromisos de las autoridades para reducir el déficit fiscal, focalizar la inversión pública en áreas de alta relevancia para la reactivación económica y mantener una economía competitiva y transparente, una vez que se supere la emergencia sanitaria.

Towards this end, IDB and AFD have exchanged on the modalities of the support to be brought to Latin American countries both in their immediate to rather short terms responses to COVID-19, and on the medium to long-term recovery plans. These could be developed further, leading to a potential joint-cooperation aligned with climate and SDGs objectives, key drivers of the IDB-AFD partnership.

Tax revenues in Latin America and the Caribbean (LAC) increased to 23.1% of GDP on average in 2018, according to the new edition of Revenue Statistics in Latin America in the Caribbean published today. However, these gains are now under threat as a result of the region’s deteriorating fiscal outlook, which has been exacerbated by the COVID-19 pandemic and the global economic crisis.

Los ingresos tributarios en América Latina y el Caribe (ALC) alcanzaron 23.1% del PIB en promedio en 2018, según la nueva edición de Estadísticas Tributarias en América Latina y el Caribe publicada hoy. Sin embargo, el aumento de la carga tributaria se ve amenazado como resultado del deterioro de las perspectivas fiscales de la región, que se ha exacerbado por la pandemia del COVID-19 y la crisis económica mundial.

Para medir el pleno impacto de la crisis y proporcionar la base para las acciones necesarias, los economistas del BID han seguido de cerca los efectos de COVID-19 en la región. El resultado es un informe que arroja luz sobre las implicaciones económicas para seis países del Caribe: Las Bahamas, Barbados, Guyana, Jamaica, Surinam y Trinidad y Tobago. De este análisis surgen dos desafíos principales que deberán enfrentar los países en esta coyuntura.

2020 Latin American and Caribbean Macroeconomic Report