The pandemic will result in the closure of 2.7 million companies in Latin America

These closures could result in the loss of more than 8.5 million jobs in the region.

The crisis caused by the pandemic coronavirus should result in the closure of more than 2.7 million businesses and the loss of 8.5 million jobs in Latin America, warned on Thursday the ECLAC, the economic commission of the UN for the region.

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The sectors trade and hotels and restaurants, which have a large number of small and medium-sized enterprises (SMES), will be most affected by the impact of the epidemic Covid-19, said the ECLAC in a report. This organization expects a collapse of the economy of the region of 5.3% this year, due to the closure of shops, the collapse of tourism and the decline in exports to China. This crisis, linked to the pandemic, emphasizes the need to advance towards a new model of development, according to ECLAC.

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Four proposals to exit the crisis

To do this, it will be necessary to put in place "policies that will respond to the emergency and put in place a strategy to overcome the structural weaknesses of our economies and our societies," said Alicia Barcena, ECLAC executive secretary.

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The UN agency makes four proposals : to expand the time and scope of aid in relation to liquidity and financing of businesses, co-financing the salaries paid by the companies for a period of six months, to support the self-employed and support to large companies in strategic sectors are the most affected.

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"Covid-19", the new coronavirus

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"The search for greater productivity and efficiency, we must advance towards a sustainable transformation and inclusive. The active industrial policies will be essential in order to avoid the crisis leading to the closure of businesses, loss of jobs and the consequences for the environment," said Alicia Barcena. Latin America, which has become the epicenter of the pandemic, for a total of more than 2.6 million cases of Covid-19, which almost 119 000 deaths.