September 22, 2020

The keys to the reopening of the economy in America in the middle of COVID-19



The largest economies in America such as the US, Brazil, Argentina or Mexico are reactivating asymmetrically and focusing on sectors such as commerce, construction or the automotive industry to save the economy from a global drop of up to 3.2% in 2020 by the break of COVID-19, the biggest crash since the Great Depression.

Latin America will contract 5.3% in 2020, which will generate almost 11.5 million new unemployed and almost 30 million more poor people, according to the Economic Commission for Latin America and the Caribbean (ECLAC).

Mexico, foresees that organism, would contract a 6.5% like Argentina and Ecuador, Brazil 5.2%, Chile 4%, Colombia 2.6% and Panama 2%, to name a few examples.

In total, the world will lose nearly $ 8.5 trillion in economic output over the next two years, according to the United Nations.

Here are the 8 keys to the reactivation of the economy in the main countries of America, which already total 1.81 million infected, the majority in the United States:

1.EACH STATE GOES AT ITS RHYTHM IN THE USA.

In the US, whose economy according to the United Nations will fall 4.8% in 2020 and almost 37 million people have applied for unemployment benefits, each state or even county goes at its own pace.

While Florida launched Phase 1 with the opening of a large part of non-essential businesses and offices, in Indiana industrial operations are resumed, in Kentucky construction companies operate and in Missouri retail stores open.

In New York, Governor Andrew Cuomo advanced that a fifth region meets the sanitary criteria to begin its reopening gradually.

2. BRAZIL, A GIANT THAT DOESN’T STOP

Brazil’s industrial production fell 9.1% in March compared to February, and against statistics President Jair Bolsonaro last week included the construction sector and industrial activities in the list of essential services that continue to operate.

Bolsonaro also signed a decree on Monday to include gyms, beauty salons and barbershops on the list of essential services that must continue to function.

3 THE ENGINES SOUND IN MEXICO

In Mexico, the Government announced that the country will reopen its automotive, mining and construction industries on May 18, and from June 1 will begin a gradual lifting of the measures according to the health situation of each state.

This is good news for the economy considering that in Mexico the automotive sector is the main manufacturing sector, contributing 3.6% of national GDP and 20.7% of manufacturing in 2018.

Also, the Mexican beer industry “is ready” to reactivate its production from June 1, said the president of Cerveceros de México: Cámara de la Cerveza, Marco Mascarua.

4.THE ARGENTINE FACTORIES ARE READY

The Government of Argentina reported that more than 640 factories in the country that had suspended their activity for more than 50 days, when the compulsory quarantine began, will soon start producing again.

Among the industrial branches that will resume their activity are the automotive and repair workshops, motorcycle and tire manufacturing, household appliances, textiles, footwear and clothing; as well as sectors such as metallurgy, tobacco, graphics, wood, toys, pharmaceuticals, chemicals and petrochemicals.

5.ECUADOR WANTS TO RESURGE

In Ecuador, one of the countries hardest hit by the pandemic in America, strategic sectors such as fishing and agriculture are beginning to reactivate in various provinces with sanitary protocols.

In the province of Loja, in southern Ecuador, the Executive is working to revive agriculture and the products will be marketed in home baskets.

6.CHILE, COUNTER-CURRENT

Unlike countries with fewer cases such as Argentina or Colombia, Chile rejected from the start decreeing national confinement and completely closing the economy and opted for “selective and strategic quarantines.”

However, in this strategy the inevitable impact has been felt in sectors such as wine, which estimates a drop in exports of 20% this year.

7.A GRADUAL PLAN IN COLOMBIA

From last Monday until May 25, when compulsory isolation will end, Colombia will allow the gradual activation of industrial activities and the sale of motor vehicles, as well as furniture stores, stationeries, laundries and bookstores that comply with sanitary protocols. .

Those sectors are added to those of construction and manufacturing, which began to return to their activities on April 27, following the same protocols.

8.THE DESCALING BEGINS IN PANAMA

Panama announced that it will reactivate its economic activity by blocks, starting with home-based retail trade and technical services for electricity, plumbing and air conditioning maintenance.

In addition to the aforementioned activities, mechanical workshops can also work, as well as artisanal fishing and aquaculture.

Daniel Salazar Castellanos

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