The world Bank (WB) estimated that the Argentine economy will suffer this year the highest contraction in Latin America, 12.3%, for “the longest quarantine in the world” applied to the pandemic, but projected that in 2021 it will have a reactivation.
The estimate appears in the report of the annual meeting of the World Bank and the IMF, which estimates that this year’s annual decline in Gross Product will be offset by a growth of 5.5% in the next year and 1.9% in 2022, therefore, it will not be able to recover the level of December 2019.
The contraction would almost double the previous one of the World Bank, which had calculated last June that it would be 7.3% this year. The entity projected that, due to the pandemic, GDP in the region is expected to fall 7.9% this year and growth of 4% is expected next year.
The World Bank predicted a 5.4% fall for Brazil, 6.3% in Chile, 7.3% in Bolivia, 7.2% in Colombia, 11% in Ecuador, 12 in Peru, 4% in Uruguay, and 10% in Mexico.
The World Bank’s chief economist for Latin America and the Caribbean, Martín Rama, affirmed that Argentina “comes from two years of decline and from all the uncertainty about what would happen to the debt,” after highlighting the agreement with creditors.