Latin America & the Caribbean

Countries in the LAC region have been particularly hard hit by the pandemic because of the region’s high level of urbanization, which makes social distancing difficult, the large number of workers in informal employment, and high rates of overweight and obesity, which aggravate COVID-19. LAC governments have reacted with diverse policies, from strong lockdowns to allowing economic activities to continue largely uninterrupted. Despite substantial commitments to health interventions, social protection, and employment support, the region’s GDP has likely fallen more than that of other regions. In response to the significant declines in economic activity, governments rolled out economic and social policy initiatives for families and firms, supported by increased their public expenditures, and have used monetary policies to inject liquidity into their economies. Yet, a modeling exercise shows that the poverty and nutrition impacts of the pandemic will linger into 2022. Post-pandemic, the region will need to redesign safety nets to address and increase support for food system transformation to build resilience to future crises.