Latin American Economies Will See "Record-Breaking Contraction" This Year  | WHAT REALLY HAPPENED

Latin American Economies Will See "Record-Breaking Contraction" This Year 

With coronavirus cases surging in Latin America, there's another issue emerging: A sharp economic downturn that may not result in recovery until late next year.

Alberto Ramos, head of Latin America economic research at Goldman Sachs, told CNBC Wednesday that the outlook for Latin American countries is "pretty uninspiring."

"We expect to climb (out) of a very deep hole during the second half of the year and throughout 2021," Ramos said, adding that countries such as Argentina, Peru, and Mexico are expected to record double-digit contractions in growth. He said other countries may experience slightly less severe declines but are "still a record-breaking contraction — at least the worst we've seen since the Second World War."

Ramos explained inflation remains low on the continent, which would allow central banks to ease for a much longer timeframe to support faltering economies.

"The continuation of the low growth environment can be socially and politically destabilizing and also undermine the credibility of the institutions," he warned.

Webmaster's Commentary: 

One has to wonder just how many of these economically contracting countries will be ripe for "regime change", American-style, due to these economic hardships.

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