CABEI considers it necessary to reactivate domestic trade as a relevant role in the economic recovery
The proposed actions will contribute to reduce the impact created by the health crisis.
Tegucigalpa, August 20, 2020. - After such a prolonged pandemic in the world such as COVID-19, governments have targeted their efforts to prevent and contain the virus. The emergency caused several countries to choose to establish quarantine and confinement actions for people, affecting economic and social growth, a scenario that was addressed by the Central American Bank for Economic Integration (CABEI), through the Virtual Forum: Economic and Social Impact of COVID-19 and future challenges for Central America and the Dominican Republic.
The forum analyzed the dimension of the economic and social impact of the current COVID-19 crisis in Central America and the Dominican Republic, its effect on the economic growth of the region, and it also discussed measures, monetary and fiscal policies implemented by governments, to mitigate the negative effects derived from the pandemic.
In search of the best path, CABEI Executive President, Dr. Dante Mossi, stated that, in the economic reactivation phase, it is important that countries invest in programs to provide food to unemployed families and support small and medium-sized enterprises, so that they can generate jobs again.
The representative of the Bank urged to stimulate the Central American domestic market in view of the fall of some of the main export markets for the region’s products, such as the United States and the European Union. “Internal trade makes us very strong”, he commented.
During the forum, Domingo González, Executive Secretary of SEMCA; Melvin Redondo, Secretary General of SIECA; Alicia Bárcenas, Executive Secretary of ECLAC; Eduardo Espinoza, Director of the SIECA Study Center and Florencia Castro-Leal, Chief Economist of CABEI participated as speakers.
At the beginning of the pandemic, the multilateral agency, along with its partner countries, took up the recommendations of the Heads of State and Government of the SICA countries to design and approve the Emergency Support and Preparedness Program for COVID-19 and the Economic Reactivation of around USD2 billion. To this end, it has made available to the government authorities reimbursable and non-reimbursable resources separated by component according to the approach of the response.
The proposal defined by the Bank plans to reduce the economic impacts generated from the health crisis, to meet the main needs of the member countries and extra-regional partners.