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Updated March 11, 2021
Latin America and the Caribbean: Impact of COVID-19
The Coronavirus Disease 2019 (COVID-19) pandemic is
Facility, a mechanism developed by global health
having widespread economic, social, and political effects
organizations for pooled procurement and distribution of
on Latin America and the Caribbean. As of March 9, 2021,
vaccines; 22 countries in the region have signed agreements
the region had over 22 million confirmed cases (18.9% of
to access vaccines through the facility. In addition, 10
cases worldwide) and almost 704,000 deaths (26.9% of
countries in the region—Bolivia, Dominica, El Salvador,
deaths worldwide). Brazil, Mexico, Colombia, Argentina,
Grenada, Guyana, Haiti, Honduras, Nicaragua, St. Lucia,
and Peru had the highest numbers of deaths in the region,
and St. Vincent and the Grenadines—are eligible to benefit
and Brazil and Mexico had highest death tolls worldwide
from the COVID-19 Vaccines Advance Market
after the United States. The regional rankings change when
Commitment (COVAX AMC), launched by Gavi, the
examining deaths per 100,000—using this measurement,
Vaccine Alliance, to provide donor-funded vaccines for
Mexico had the highest rate in the region, followed by Peru,
low- and middle-income economies worldwide.
Panama, Brazil, and Colombia (see Table 1). A University
of Washington COVID-19 projection model (updated Mach
Table 1. COVID-19 Cases, Deaths, and Mortality
6, 2021) forecast deaths in the region could reach over
Rates in Latin American/Caribbean (LAC) Countries
885,000 by July 1, 2021.
(countries with more than 2,000 deaths, as of March 9, 2021)
On March 10, 2021, the Pan American Health Organization
Cases
Deaths per
Country
Deaths
(PAHO) reported on the surge of infections and deaths in
(millions)
100,000
Brazil due to a new, more transmissible variant of the virus.
World Health Organization officials expressed concerns
Brazil
11.122
268,370
128.12
that neighboring countries could be affected unless Brazil
Mexico
2.138
191,789
151.98
takes aggressive health measures. PAHO also noted rising
infections in Paraguay, Uruguay, and Chile and declining
Colombia
2.282
60,676
122.21
infections in Mexico and Central America, except in some
Argentina
2.162
53,352
119.68
areas of Guatemala and Panama. In the Caribbean, PAHO
described a mixed picture, with infections falling in some
Peru
1.380
48,163
150.56
countries and rising in others, including Cuba and the
Chile
.864
21,182
113.10
Bahamas.
Ecuador
.295
16,069
94.06
PAHO has played a major role in supporting countries in
Bolivia
.246
11,858
104.45
their pandemic responses. When the pandemic began to
surge in the region in May 2020, PAHO Director Dr.
Guatemala
.180
6,493
37.65
Carissa Etienne expressed concern about the poor and other
Panama
.346
5,944
142.31
vulnerable groups at greatest risk, including those living in
the Amazon Basin, particularly indigenous communities;
Honduras
.175
4,297
44.82
women, who make up 70% of the health workforce in the
Americas; people of African descent; migrants in temporary
Paraguay
.172
3,360
48.30
settlements; and prisoners in crowded jails.
Dom. Rep.
.244
3,191
30.03
The rollout of vaccines in the region has been slow, with
Costa Rica
.208
2,848
56.97
some exceptions; there is concern that widespread vaccine
Total LAC
22.254
703,852
—
access in some countries could be delayed until 2022. As of
March 9, according to the New York Times vaccine tracker,
United States
29.095
527,643
161.28
Chile was the leader in the region, with almost 23% of its
Source: Johns Hopkins University School of Medicine, Coronavirus
population having had at least one dose; the Chilean
Resource Center, “Mortality Analyses,” March 10, 2021, updated
government aims to vaccinate 80% of its population by July
daily, at https://coronavirus.jhu.edu/data/mortality.
2021. As of March 9, Barbados had 17% with at least one
dose and Dominica had 10%, with both countries receiving
On March 1, Colombia became the first country in the
donations from India. Remaining countries in the region
region to receive vaccines through COVAX; the region is
have vaccinated less than 5% of their population, with most
expected to receive 27.8 million doses in a first distribution
countries having less than 1% vaccinated.
round through May 2021. Many countries in the region also
have signed commercial agreements with pharmaceutical
PAHO has helped countries prepare for a vaccine rollout
companies, and several countries have begun to use
and facilitated access to vaccines through the COVAX
Chinese and Russian vaccines. Cuba is making progress on
a vaccine it is developing.
https://crsreports.congress.gov
Latin America and the Caribbean: Impact of COVID-19
Economic Impact
increase in authoritarian practices, weak democratic
In its January 2021 World Economic Outlook Update, the
institutions, politicized judicial systems, corruption, and
International Monetary Fund estimated a 7.4% economic
high levels of crime and violence. Economic factors include
contraction for the region. Economic recovery may be a
stagnant or declining growth; high levels of inequality and
protracted process in countries that rely heavily on global
poverty; and inadequate public services, social safety net
trade and investment. Caribbean nations that depend on
programs, and advancement opportunities. The pandemic
tourism face deep economic recessions, several with
has exacerbated these factors, which could stoke social
projected gross domestic product declines well over 10% in
unrest similar to that in 2019.
2020. Likewise, several South American nations hard hit by
Human rights groups and other observers have expressed
the pandemic are projected to register economic
concern about leaders taking advantage of the pandemic to
contractions over 10%. Although most countries in the
advance their own agendas and restrict freedom of
region are expected to begin economic recovery in 2021,
expression. In Bolivia, the former interim government twice
the IMF regional growth forecast of 4.1% lags behind the
postponed presidential elections, prompting widespread
expected world economic growth forecast of 5.5%.
protests, until elections were held in October 2020. In
Venezuela, the government and security forces have used a
The economic contraction in 2020 has increased poverty
state of emergency imposed to curb the virus’s spread as an
and exacerbated income inequality in the region. Latin
excuse to crack down on dissent. Cuba also has used
America already was the most unequal region in the world
regulations designed to prevent the spread of COVID-19 to
in terms of income inequality, according the U.N.
repress government opponents.
Economic Commission for Latin America and the
Caribbean (ECLAC). A March 2021 ECLAC report said 22
U.S. Policy Considerations
million people in Latin America moved into poverty in
The 116th Congress passed two supplemental appropriations
2020, with overall poverty rising to 33.7% of the region’s
measures in March 2020—P.L. 116-123 and P.L. 116-
population from 30.5% in 2019.
136—that provided nearly $1.8 billion in aid to respond to
COVID-19 globally. The State Department reported that, as
In response to the vast need for financing to respond to the
of August 2020 (latest information made available), the
pandemic and the associated economic downturn,
United States was providing $141.4 million in new and
international financial institutions have increased lending to
previously announced assistance to help countries in the
countries throughout the region.
region respond to the pandemic.
The IMF reported, as of March 4, 2021, $68.3 billion in
lending to 21 countries in the region contending with the
In December 2020, Congress approved the Consolidated
pandemic’s economic impact, including Chile ($23.9
Appropriations Act, 2021 (P.L. 116-260), which included
billion), Colombia ($16.9 billion), Peru ($11 billion),
$4 billion in emergency Global Health Programs assistance
and Ecuador ($7.1 billion).
for COVID-19 vaccine procurement and delivery, with
funds made available as a contribution to Gavi, the Vaccine
The Inter-American Development Bank (IDB) reported
Alliance. As noted, Gavi supports COVAX AMC and
in December 2020 that its response totaled nearly $8.1
coordinates implementation of the COVAX Facility, both
billion, focused on financing for immediate public-
of which benefit countries in the region. P.L. 116-260 also
health needs, safety nets for vulnerable population,
appeared to fully fund the U.S. government’s $65.2 million
economic productivity and employment, and fiscal
assessed FY2021 contribution to PAHO. (See CRS Report
measures to mitigate economic impacts. In December
R46514, U.S. Foreign Assistance to Latin America and the
2020, the IDB announced it would mobilize $1 billion to
Caribbean: FY2021 Appropriations.)
help countries acquire and distribute vaccines.
The World Bank reported, as of January 18, 2021, that it The 117th Congress may consider additional support for the
had delivered $7.4 billion to 21 countries in the region.
region’s pandemic recovery. For example, legislation
Assistance focuses on minimizing the loss of life,
introduced near the end of the 116th Congress, S. 4997,
strengthening health systems and disease surveillance,
would have authorized $24 billion for a capital increase for
mitigating the pandemic’s economic impact, and
the Inter-American Development Bank, in part to help
addressing supply-chain issues and delivery.
countries address the pandemic and its economic impact.
Some Members of Congress have called for President
The Development Bank of Latin America announced in
Biden to prioritize Latin American and Caribbean countries
July 2020 that it had provided $4.9 billion in financing
in donating surplus vaccines to countries in need. Other
to address the effects of the pandemic across the region.
Members have argued for and against a proposal at the
Political Impact
World Trade Organization to waive intellectual property
rights for COVID-19 vaccines.
Even before the pandemic, public satisfaction with the
quality of democracy in several Latin America and
Mark P. Sullivan, Specialist in Latin American Affairs
Caribbean countries was eroding. The 2018-2019
AmericasBarometer public opinion survey showed the
June S. Beittel, Analyst in Latin American Affairs
lowest level of satisfaction with democracy since the poll
Peter J. Meyer, Specialist in Latin American and Canadian
began in 2004. Several broad political and economic factors
Affairs
drove the decline and help explain the eruption of social
Clare Ribando Seelke, Specialist in Latin American
protests in the region in 2019. Political factors include an
Affairs
https://crsreports.congress.gov
Latin America and the Caribbean: Impact of COVID-19
Maureen Taft-Morales, Specialist in Latin American
Affairs
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Disclaimer
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