link to page 1 
Updated February 25, 2021
Latin America and the Caribbean: Impact of COVID-19
The Coronavirus Disease 2019 (COVID-19) pandemic is
Nicaragua, St. Lucia, and St. Vincent and the Grenadines—
having widespread economic, social, and political effects
are eligible to benefit from the COVID-19 Vaccines
on Latin America and the Caribbean, a region with strong
Advance Market Commitment (COVAX AMC), launched
congressional interest because of deep U.S. linkages .
by Gavi, the Vaccine Alliance, to provide donor-funded
vaccines for low- and middle-income economies
As of February 22, 2021, the region had almost 20.8 million
worldwide. Many countries in the region also have signed
confirmed cases (18.6% of cases worldwide) and over
commercial agreements with pharmaceutical companies,
661,000 deaths (26.7% of deaths worldwide). Brazil,
and several countries have begun using Chinese and
Mexico, Colombia, Argentina, and Peru had the highest
Russian vaccines. India also has donated vaccines to several
numbers of deaths in the region, and Brazil had the second-
Caribbean countries. Cuba has been making progress on a
highest death toll worldwide, after the United States. The
vaccine it is developing.
regional rankings change in terms of per capita deaths—
Mexico had the highest recorded deaths per capita,
Table 1. COVID-19 Cases, Deaths, and Mortality
followed by Peru, Panama, Colombia, and Brazil (see
Rates in Latin America and the Caribbean (LAC)
Table 1). The Pan American Health Organization (PAHO)
(countries with more than 2,000 deaths, as of Feb. 22, 2021)
reported on February 24 that although infections were
declining in many countries in the region, there were
Cases
Deaths per
Country
Deaths
increased outbreaks in Peru along the border areas with
(millions)
100,000
Brazil and Colombia and several Caribbean countries were
reporting a rise in infections. A University of Washington
Brazil
10.195
247,143
117.99
COVID-19 projection model (updated February 20, 2021)
Mexico
2.043
180,536
143.07
forecasts deaths in Latin America and the Caribbean could
reach over 924,000 by June 1, 2021.
Colombia
2.230
58,974
118.78
Argentina
2.070
51,359
115.43
Experts and observers have expressed concern that some
countries, such as Mexico, Nicaragua, and Venezuela, have
Peru
1.283
45,097
140.98
undercounted their death tolls significantly. Many observers
Chile
.803
20.126
107.46
have expressed special concern for Venezuela, where the
health care system was collapsing prior to the pandemic.
Ecuador
.275
15,547
91.00
Bolivia
.243
11,470
101.03
PAHO has played a major role in supporting countries in
preventing, detecting, and responding to the pandemic.
Guatemala
.171
6,306
36.56
When the pandemic began to surge in the region in May
Panama
.337
5,756
137.81
2020, PAHO Director Dr. Carissa Etienne expressed
concern about the poor and other vulnerable groups at
Honduras
.166
4,024
41.97
greatest risk, including those living in the Amazon Basin
(particularly indigenous communities); people of African
Paraguay
.153
3,080
44.28
descent; migrants in temporary settlements; and prisoners in
Dom. Rep.
.236
3.048
28.68
crowded jails. In July 2020, PAHO issued an alert urging
countries to intensify efforts to prevent further spread of the
Costa Rica
.203
2,782
55.65
virus among indigenous communities in the Americas.
Total LAC
20.797
661,149
—
The rollout of vaccines in the region has been slow, and
United States
28.189
500,244
152.90
there is concern that widespread vaccine access in some
Source: Johns Hopkins University School of Medicine, Coronavirus
countries could be delayed until 2022. Chile has been an
Resource Center, “Mortality Analyses,” February 23, 2021, updated
exception, with a goal of vaccinating 80% of its population
daily, at https://coronavirus.jhu.edu/data/mortality.
by July 2021. PAHO has helped countries prepare for a
rollout of vaccines and facilitated access to vaccines under
Economic Impact
the COVAX Facility, a mechanism developed by global
Before the pandemic, the International Monetary Fund
health organizations for pooled procurement and
(IMF) projected 1.6% economic growth for the region in
distribution of vaccines. Twenty-two countries in the region
2020; in its January 2021 World Economic Outlook
have signed agreements to access vaccines through the
Update, the IMF estimated a 7.4% economic contraction for
facility. In addition, 10 countries in the region—Bolivia,
the region. Economic recovery may be a protracted process
Dominica, El Salvador, Grenada, Guyana, Haiti, Honduras,
in countries that rely heavily on global trade and
https://crsreports.congress.gov
Latin America and the Caribbean: Impact of COVID-19
investment. Caribbean nations that depend on tourism face
began in 2004. Several broad political and economic factors
deep economic recessions, several with projected gross
have driven the decline and help to explain the eruption of
domestic product declines well over 10% in 2020.
social protests in the region in 2019. Political factors
Likewise, several South American nations hard hit by the
include an increase in authoritarian practices, weak
pandemic are projected to register economic contractions
democratic institutions, politicized judicial systems,
over 10%. Although most Latin American and Caribbean
corruption, and high levels of crime and violence.
countries are expected to begin to recover economically in
Economic factors include stagnant or declining growth;
2021, the IMF regional growth forecast of 4.1% lags behind
high levels of inequality and poverty; and inadequate public
the expected world economic growth forecast of 5.5%.
services, social safety net programs, and advancement
opportunities. The pandemic has exacerbated these factors,
The decline in economic growth in 2020 has exacerbated
which could lead to further deterioration in political
income inequality and poverty throughout the region. Latin
conditions and stoke social unrest in the region similar to
America already was the most unequal region in the world
that experienced in 2019.
in terms of income inequality, according to the U.N.
Human rights groups and other observers have expressed
Economic Commission for Latin America and the
concern about leaders taking advantage of the pandemic to
Caribbean (ECLAC). ECLAC projected that in 2020,
advance their own agendas and restrict freedom of
inequality would rise in all countries, with the worst results
expression. In El Salvador, critics accused President Bukele
in the region’s largest economies—Brazil, Mexico, and
of exploiting the health crisis to pursue his aggressive anti-
Argentina. According to the U.N., an estimated 45 million
gang policies. In Bolivia, the former interim government
people have been pushed into poverty, wiping out progress
twice postponed presidential elections, prompting
made over the past 15 years.
widespread protests, until elections were held in October
2020. In Venezuela, the government and security forces
In April 2020, the World Bank predicted remittances from
have used a state of emergency imposed to curb the virus’s
abroad to Latin America and the Caribbean would decline
spread as an excuse to crack down on dissent. Cuba also has
by over 19% in 2020. Remittances, however, began to
used regulations designed to prevent the spread of COVID-
rebound in mid-2020, including in Central America and
Mexico, which saw record increases for the year.
19 to repress government opponents.
In response to the vast need for financing to respond to the
U.S. Policy Considerations
pandemic and the associated economic downturn,
In March 2020, Congress passed two supplemental
international financial institutions have increased lending to
appropriations measures—P.L. 116-123 and P.L. 116-
countries throughout the region.
136—that provided nearly $1.8 billion in aid to respond to
COVID-19 globally. The State Department reported that, as
The IMF reported, as of January 29, 2021, $66.5 billion
of August 2020 (latest information made available), the
in lending to 21 countries in the region contending with
the pandemic’s ec
United States was providing $141.4 million in new and
onomic impact, including Chile ($23.9
previously announced assistance to help countries in the
billion), Colombia ($16.9 billion), Peru ($11 billion),
region respond to the pandemic.
and Ecuador ($7.1 billion).
The Inter-American Development Bank (IDB) reported
In December 2020, Congress approved the Consolidated
in December 2020 that its response to the pandemic
Appropriations Act, 2021 (P.L. 116-260, Division K, Title
totaled nearly $8.1 billion, focused on financing for
IX), which included $4 billion in emergency Global Health
immediate public-health needs, safety nets for
Programs assistance for COVID-19 vaccine procurement
vulnerable population, economic productivity and
and delivery, with funds made available as a contribution to
employment, and fiscal measures to help mitigate
Gavi, the Vaccine Alliance. As noted, Gavi supports
economic impacts. In December 2020, the IDB
COVAX AMC and coordinates implementation of the
announced it would mobilize $1 billion to help countries
COVAX Facility, both of which benefit countries in the
acquire and distribute COVID-19 vaccines.
region. P.L. 116-260 also appeared to fully fund the U.S.
government’s $65.2 million assessed FY2021 contribution
The World Bank reported, as of January 18, 2021, that it
to PAHO. (See CRS Report R46514, U.S. Foreign
had delivered $7.4 billion to 21 countries in the region.
Assistance to Latin America and the Caribbean: FY2021
Assistance focuses on minimizing the loss of life,
Appropriations.)
strengthening health systems and disease surveillance,
mitigating the pandemic’s economic impact, and
The 117th Congress may consider additional support for the
addressing supply-chain issues and delivery.
region’s pandemic recovery. For example, legislation
The Development Bank of Latin America announced in
introduced near the end of the 116th Congress, S. 4997,
July 2020 that it had provided $4.9 billion in financing
would have authorized $24 billion for a capital increase for
to address the effects of the pandemic across the region.
the Inter-American Development Bank, in part to help
countries address the pandemic and its economic impact.
Political Impact
Mark P. Sullivan, Specialist in Latin American Affairs
Even before the pandemic, public satisfaction with the
June S. Beittel, Analyst in Latin American Affairs
quality of democracy in several Latin America and
Peter J. Meyer, Specialist in Latin American and Canadian
Caribbean countries was eroding. The 2018-2019
AmericasBarometer public opinion survey showed the
Affairs
lowest level of satisfaction with democracy since the poll
https://crsreports.congress.gov
Latin America and the Caribbean: Impact of COVID-19
Maureen Taft-Morales, Specialist in Latin American
Clare Ribando Seelke, Specialist in Latin American
Affairs
Affairs
IF11581
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permissio n of the copyright holder if you
wish to copy or otherwise use copyrighted material.
https://crsreports.congress.gov | IF11581 · VERSION 12 · UPDATED