COVID-19 Cases Down, Vaccinations Up Across Latin America

• Fitch Solutions believes that the rapid decline in COVID-19 cases and acceleration in vaccinations will support Latin America’s economic rebound in the months ahead. 
• New cases in the region’s largest markets are at the lowest level since Q220, while vaccination campaigns have accelerated, allowing for a gradual loosening of public health restrictions. 
• While there has been notable variation in restrictions by country, the intensity of restrictions overall has been relatively modest in recent months despite the severe wave of COVID cases. This reflects policymakers’ concerns about the economic impact of lockdowns, popular fatigue with restrictions, and recent bouts of instability in markets such as Brazil and Colombia. 
• The agency expects governments will continue to gradually loosen restrictions moving forward, as vaccine availability improves, supporting its forecast for 5.6% real GDP growth in Latin America in 2021.

(Source: Fitch Solutions)