While Latin America and the Caribbean (LAC) has just 8 percent of the global population, it accounts for 25 percent of global deaths from COVID-19. The 7.4 percent loss of GDP in 2020 was the largest in a single year since 1821. The region also faces a growing environmental crisis as well as the health crisis. Long overdue reforms are required to spur recovery and boost medium-term growth, along with investments for a greener and more sustainable future aimed at zero net carbon emissions over a reasonable period of time.
This report details the risks and outlines a set of policies that should help countries realise a stronger recovery, not just to the low growth rates of the pre-pandemic period, but to higher rates of growth that will benefit all, with more efficient public policies, higher productivity in the private sector, and more sustainable economies. Chapter 9 presents evidence on how investing for a sustainable recovery constitutes a win-win strategy, adding millions of jobs and increasing economic growth as well as reducing climate risks. If the right policies are adopted, there is no trade-off between climate and growth objectives. A set of policies are suggested to leverage synergies between economic recovery and climate goals. Estimates suggest additional growth of more than 1 percent could be attained.