This daily round-up brings you a selection of the latest news updates on the COVID-19 coronavirus pandemic, as well as tips and tools to help you stay informed and protected. Top stories: South Korea flu vaccine troubles; grim milestones for Mexico and the US; restrictions are relaxed in Bogota; Disneyland Hong Kong reopens.

ECLAC’s Special Report COVID-19 No. 5, entitled Addressing the growing impact of COVID-19 with a view to reactivation with equality: new projections, indicates that since both external and domestic shocks have intensified, the region will experience a -9.1% fall in Gross Domestic Product (GDP) in 2020, with drops of -9.4% in South America, -8.4% in Central America and Mexico, and -7.9% in the Caribbean upon excluding Guyana, the strong growth of which prompts a smaller contraction in the subregional total (-5.4%).

“Productivity levels in emerging markets and developing economies remain less than 20 percent of the average in advanced economies, and only 2 percent in low income countries,” said World Bank Vice President for Equitable Growth, Finance and Institutions, Ceyla Pazarbasioglu. “A possible silver lining may be that changes in behavior from the pandemic will accelerate the adoption of new technologies, greater efficiencies among businesses, and the pace of scientific innovation. However, it is vital to ensure that these gains are widely distributed and that technology-driven labor market disruptions are well managed.”

El Banco Interamericano de Desarrollo (BID) aprobó una asistencia no reembolsable de US$60 millones para apoyar a los sectores más vulnerables de Haití frente a la crisis causada por la COVID-19.

La ayuda será administrada por el Fondo de Asistencia Económica y Social (FAES), un organismo autónomo dependiente del Ministerio de Finanzas, que se encarga de implementar los programas de asistencia social en Haití, donde 59 por ciento de la población vive bajo la línea de pobreza.

A $76.2 million loan from the Inter-American Development Bank (IDB) will help finance efforts to contain the pandemic, mitigate its effect on poor households, and promote counter-cyclical policies that will ease the crisis' short-term effect on the economy.

Broader structural challenges must be addressed to build back better and transform the region’s development model.

Against the backdrop of pervasive inequality, accessible and comprehensive welfare systems must be developed, fair taxation systems created, decent jobs promoted, environmental sustainability strengthened, and social protection mechanisms reinforced, according to the UN chief. Moreover, regional economic integration is required, with “women participating fully and safely in public and economic life”, he stressed.

The latest OECD Economic Survey of the United States says that even as some businesses reopen with the lifting of coronavirus confinement measures, hard-hit sectors like hospitality and leisure will continue to need support, as will newly unemployed or displaced workers who may need to look for jobs in different sectors. The recent extension of the US Paycheck Protection Program by five weeks to August 8 is a welcome move to help small businesses struggling with the crisis. Extending exceptional unemployment benefits beyond the end-July cut-off date would offer a similar lifeline to the millions of households at risk of falling into poverty, as would assistance for job search (such as employment placement services) and support for geographic mobility.

Alicia Bárcena explained that ECLAC is proposing five, very concrete recommendations: a debt relief initiative through a debt for climate change adaptation swap, which includes the creation of a resilience fund; a debt service standstill and a change in international financial institutions’ (IFIs) eligibility criteria for granting concessional funding; stage contingency bonds, especially with hurricane clauses; green and blue bonds; and liquidity support via the issuance of Special Drawing Rights (SDRs).

“Now more than ever, the safety of our society as a whole depends on the effective protection of the most vulnerable. Xenophobia and discrimination undermine our response to the COVID-19 pandemic and efforts to address the socio-economic impacts that disproportionately burden the most vulnerable and marginalized elements of our societies including migrants”, said IOM Director General António Vitorino.

The UN’s trade and development body warned that the loss could rise to $2.2 trillion or 2.8% of the world’s GDP if the break in international tourism lasts for eight months, in line with the expected decline in tourism as projected by the UN World Tourism Organization (UNWTO).

The report – Extreme Outlier: The Pandemic’s Unprecedented Shock to Tourism in Latin America and the Caribbean – launches a new global Tourism Dependency Index for countries, including 35 Latin American and Caribbean economies. It urges governments to take unprecedented measures to prevent the spread of the virus, and to support citizens and economies through this shock to the most tourism-dependent region in the world. 

Governments in nine Caribbean countries will still be able to maintain their disaster risk management efforts even with national finances stretched by the demands of responding to the COVID-19 pandemic.

This is because the Government of Canada has partnered with the Caribbean Development Bank to offer assistance through a new CAD$20 million fund - the Canada-CARICOM Climate Adaptation Fund (CCAF).

The number of working hours lost across the world in the first half of 2020 was significantly worse than previously estimated, while the highly uncertain recovery in the second half of the year will not be enough to go back to pre-pandemic levels, even in the best scenario, and risks seeing continuing large scale job losses, warns the International Labour Organization (ILO).

PAHO’s director Carissa Etienne said countries must adjust and coordinate their COVID-19 response based on increasingly detailed data. “Governments will have to make decisions, considering simultaneously health, economic, and social indicators. This will allow health officials to understand where transmission is accelerating, and which groups are at greater risk so as to better target their efforts,” she added.

MSMEs are a key component of Uruguay’s production and employment capabilities, accounting for more than 99 percent of the private sector companies and more than 67 percent of the jobs. Their activities are mostly concentrated on services and commerce – two sectors badly affected by the coronavirus crisis.

Los casos repuntan en países como Estados Unidos, Brasil, Rusia, India, Chile y México, y en América Latina en general no paran de subir. En naciones que habían logrado contener el coronavirus, como Alemania y Corea del Sur, este vuelve a resurgir. La agencia de salud de la ONU advierte que todos los gobiernos se enfrentan a un delicado equilibrio entre proteger a su gente y minimizar el daño social y económico: la clave está en ser creativos y mantener las intervenciones básicas de salud pública.

The budget-support loan will provide Panama’s government with rapid disbursement funds to finance emergency current expenses and generate a mid-term fiscal policy strategic framework to recover fiscal sustainability and ensure macroeconomic stability.

“El mundo se encuentra en una etapa nueva y peligrosa, lógicamente son muchas las personas que están cansadas de estar en casa y los países desean, con razón, abrir sus sociedades y economías, pero el virus sigue propagándose con rapidez, continúa siendo mortífero y la mayoría de las personas sigue siendo susceptible a él”, explico el director de la Organización, Tedros Adhanom Ghebreyesus.

“The world is in a new and dangerous phase. Many people are understandably fed up with being at home. Countries are understandably eager to open up their societies and economies”, WHO chief Tedros Adhanom Ghebreyesus told journalists.

“But the virus is still spreading fast, it’s still deadly, and most people are still susceptible.”

Against the backdrop of longstanding fragility, exacerbated by 18 months of a protracted political, economic, social and institutional crisis, the pandemic is “stretching this country’s already fragile health system and testing its meager social safety net”, Special Representative and head of BINUH, Helen La Lime, said.