The COVID-19 pandemic: theoretical scenarios of its socioeconomic impacts in Latin America and the Caribbean

Abstract

This paper provides some theoretical scenarios the socioeconomic impacts caused by the COVID-19 pandemic for the Latin America and the Caribbean (LAC). To do so, after a brief literature review of previous pandemics, we use the macro and microeconomic theory, together with aggregated data, in order to provide expected implications of the COVID-19 pandemic for the LAC region. At a macroeconomic level, we explain how the COVID-19 shock is causing both aggregate supply and aggregate demand to reduce so plunging the region into a recession and why such a recession is dangerously harmful for the LAC economies. At a micro level, we describe why some enterprises would adapt to remain in the market or even growth; by contrast, some of them would leave the market in the short term. For the consumers, the impact of this sanitary crisis is related to the change in their preferences and household members’ relations due to extended quarantines.

Cross-cultural validation of the Worries about COVID-19 and its consequences Scale (W-COV) in adolescents and young people

“…Particularly in Spain, there have been 219 thousand confirmed cases and 25.600 deaths due to COVID-19 at the end of April 2020, being one of the most affected countries in the world by the first wave of the virus ( Pastor-Barriuso et al, 2020 ). Latin America has also been heavily hit by the virus, with severe consequences such as the collapse of sanitary systems and notable economic recession ( Lanchimba et al, 2020 ).…”

The effect of increasing health disaster risk and public spending on economy conditions: a DSGE perspective

“…On the other hand, some foods such as rice and health products such as tissue paper, masks, etc. would be more in demand (Lanchimbra et al ., 2020). Accordingly, diseases can affect many economic decisions of households (Guiso et al.…”

COVID-19 pandemic in a local town in the Amazon: socio-political and socio-cultural scenarios in São Caetano de Odivelas, Pará

“…(iv) the social assistance offered by governments (Lanchimba, Bonilla-Bolaños & Díaz-Sánchez, 2020). Even as a local town, our research space is not immune to the impacts considered by the authors regarding the reality of Latin America and the Caribbean, given that in these pandemic conditions, global supply chains are being disrupted and the consumption of durable goods and services is reduced.…”