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Financial needs and indebtedness ramp up in Caribbean/Latin America

Featured Alicia Bárcena, executive secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), Alicia Barcena Alicia Bárcena, executive secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), Alicia Barcena
United Nations, Mar 12 (Prensa Latina) The Covid-19 pandemic has scaled up the structural gaps and expanded the financial needs of Latin American and Caribbean countries to face up such an emergency, ECLAC said today.

During an online briefing, Alicia Bárcena, executive secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), said that the present health crisis also ramped up debt levels in the region.

'All this jeopardizes the recovery and capacity of these nations for a sustainable reconstruction,' she said.

Bárcena submitted the special report ¨Financing for development in the era of the Covid-19 pandemic¨ and later ¨Latin America and the Caribbean priorities for global agenda¨, which proposes five measures to face the challenges in short, medium and long terms, and emphasizes initiatives for a better future.

In all regional countries, without exception, tax situation worsened and the indebtedness level went up, and it is expected the Gross Domestic Product (GDP) to grow 68.9 to 79.3% from 2019 to 2020, thus making the most indebted region in the developing world.

For ECLAC, it is also the region with highest external debt service in relation to goods and services (57%) exports.

Bárcena detailed public sector financing gap is heightened by the need to support payment balance especially in low-income countries.

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  • Countries: Latin America