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    • The Coronavirus in Latin America

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    Argentina Bolivia Brazil Chile Colombia Costa Rica Cuba Dominican Republic Ecuador El Salvador Guatemala Honduras Mexico Nicaragua Panama Paraguay Peru Puerto Rico Uruguay Venezuela

    The Coronavirus in Latin America

    By Elizabeth Gonzalez , Katie Hopkins , Luisa Horwitz , Paola Nagovitch , Holly K. Sonneland and Carin Zissis

    AS/COA Online looks at how governments are responding to COVID-19 across the region, as well the economic impact of the pandemic.

    The coronavirus landed in Latin America on February 26, when Brazil confirmed a case in São Paulo. Since then, governments across the region have taken an array of actions to protect their citizens and contain COVID-19’s spread. But, per a July 26 Reuters tally, Latin America has become the region with the highest number of confirmed cases globally, accounting for more than a quarter of cases in the world. 

    Aside from the health risks, there will be an economic impact as well. The World Bank forecasted in June that Latin America and the Caribbean as a whole will see a GDP contraction of 7.2 percent this year. Prior to the pandemic in October 2019, the multilateral predicted GDP growth of 1.8 percent in 2020 for the region.

    Below, AS/COA Online takes a look at measures taken and the economic impact felt in Latin America.

    This article was originally published on March 5 and has been updated with new information.

     
    Argentina

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    Government response

    • Reopening plan: On November 6, President Alberto Fernández announced that, after seven months of quarantine, the metropolitan Buenos Aires area (AMBA)—including the capital and 35 surrounding municipalities—would move into a phase of social distancing through November 29. AMBA residents may now circulate freely without any permission passes, outdoor gatherings of up to 10 people are permitted, gyms will reopen with a 10-person limit in any enclosed space, and restaurants may operate at 30 percent capacity. Public transport remains limited to essential workers. In a first move toward reopening, the government announced a new social distancing phase on June 7 that eased quarantine restrictions for large portions of the national territory with low levels of contagion. On this date, social and economic activity restarted but following strict health guidelines, including restricting social gatherings to 10 people or fewer and maintaining two meters from each other while using face masks in public spaces.
    • Mitigation measures:
      • Quarantine remains in place in 10 provinces as of November 18, including the greater Buenos Aires province (minus the capital), while the remaining 13 are in social distancing. 
      • On November 7, Argentina agreed to purchase 22 million doses of the AstraZeneca-Oxford vaccine within the first six months of 2021. The day before, Fernández said that Argentina is looking to purchase an additional 750,000 doses of the U.S. Pfizer vaccine in December, and at least 10 million doses of Russia’s Sputnik V vaccine between December and January 2021. On August 13, Fernández announced that the Argentine laboratory mAbxience signed an agreement with AstraZeneca and Oxford University to produce their vaccine, which is in its third phase of testing. Fernández announced that between 150 and 250 million doses will be available for distribution across Latin America—with the exception of Brazil, which has a separate production and distribution agreement—in the first six months of 2021. Argentina also agreed with Mexico that the first stage of production (producing the active substance) will take place in Argentina while final production stages will be in Mexico.
      • On July 27, the country began clinical trials for COVID-19 treatment using a hyperimmune serum from horse antibodies, developed by biotechnology firm Inmunova. The trials will involve 242 infected volunteers, and results are expected in October at the earliest. Previously, government-financed researchers from two Buenos Aires universities along with two technology companies announced on June 13 that they developed a second COVID-19 rapid test kit, approved by the national drug regulatory agency, which they say is faster and more accurate than the previous test announced nearly one month earlier. The government said that laboratories could produce 100,000 testing kits monthly. As of August 5, the ministry reported a testing rate of 17,129 per 100,000 inhabitants. 
      • On legislative activity, Argentina resumed sessions on May 4 after social distancing was announced by decree on March 20, with only 46 legislators allowed in Congress at once, while all others attend sessions virtually.
      • Fernández decreed a national health emergency on March 12, to be in effect for one year.  
    • Travel and border restrictions: Domestic commercial flights and land travel were allowed to resume as of October 15. Foreigners will be allowed to enter the country as of October 25. On April 27, the government imposed a total ban on international and domestic commercial flights until September 1.
    • School closings and restrictions: Beginning October 12, schools began to gradually resume in-person classes, based on how contained the virus is in that district. In-person classes at all school levels were suspended on March 15.
    • Other updates:
      • On June 29, the Supreme Court lifted the judicial recess that it implemented March 16 for itself as well as national and federal courts and resumed activities remotely. First courts of appeal and criminal courts continue to be suspended until further notice.
      • When it comes to regional ties, Argentina suspended its participation in the Mercosur trade bloc on April 24 to focus on the health and economic crisis at home after partners Brazil, Paraguay, and Uruguay agreed to advance on new trade agreements with countries, including Canada, India, Lebanon, Singapore, and South Korea. The decision only affects new trade deals, as the country will continue to work on established negotiations such as with the European Union. Argentina said it would reevaluate its position if new agreements were paused.

    Economic impact and measures

    • GDP forecasts: Argentina’s Central Bank projects an 11.8 percent contraction in GDP in 2020, greater than the 10.5 percent contraction projected by the Economic Commission for Latin American and the Caribbean, according to numbers released by both groups in early October. A September 22 National Institute for Statistics and Census report showed a 16.2 percent GDP contraction in the second quarter. The total GDP contraction for the first half of the year was 12.6 percent. On June 8, the World Bank predicted Argentina’s economy would shrink 7.3 percent this year.
    • Fiscal stimulus and economic policy: 
      • The government extended a decree, originally issued April 1, that prohibits companies from firing or suspending employees without just cause or due to downsizing through January 31. Previously, after a meeting with cabinet ministers on March 17, the government announced extending leaves of absence for workers above 65 years of age, and fiscal measures such as minimizing individual and corporate taxes.
      • On November 18, the lower house of Congress approved a bill that aims to raise roughly $3.8 billion for COVID-19 relief through a one-time 2 percent wealth tax on fortunes of $2.7 million and above. The Senate will review the bill by the end of November. 
      • With confirmed cases and deaths continuing to rise, on August 20 the government increased its health budget by over $47 million to help finance universal aid programs during the pandemic.
      • On May 11, the president added over $5.6 billion to the public spending budget and granted Chief of Staff Santiago Cafiero powers to oversee the national budget through the end of 2020 without congressional oversight. Fernández also suspended Cafiero’s congressionally approved 5 percent limit within which to make budget adjustments, saying that it is “necessary to give flexibility to spending related to the health emergency due to COVID-19." The opposition criticized this measure, including former legislator Eduardo Amadeo saying, “It is definitely unconstitutional, a state of emergency cannot shut out Congress.”
      • In an effort to control price gouging, the government on April 9 announced cooperation with the Interior Commerce Secretariat to control and regulate municipalities’ prices of basic goods across the country, including food and medicine. On April 1, the government announced it will eliminate import taxes on critical medical supplies for the duration of the health crisis.  
    • Social programs:
      • On October 13, the Central Bank issued roughly $39 million in loans to small- and medium-sized tourism-related businesses.
      • On September 24, the government extended a measure to suspend housing evictions, as well as freezes on rent hikes and mortgage rates, through January 31, 2021.
      • On August 27, the government further expanded definitions for the Emergency Employment and Production Assistance Program, including more companies that fit into the assistance program criteria. On July 24, the government incorporated financing for companies who show an increase in mid-year revenue into the program. Additionally, the government will continue to pay salaries for private sector workers whose income fell in June 2020 compared to the same period last year. Moreover, workers from companies considered “critical”––including those in tourism, entertainment, culture, health, and sports––will receive complementary salaries through December 2020 up to the minimum wage of $110 a week. This adds to the May 5 expansion to the Program allowing companies with over 800 employees to request assistance, as well as companies who have lost 30 percent in billing. The government announced on April 19 it would pay workers of companies facing a financial crisis 50 percent of their salaries, and will give zero-interest loans to self-employed workers. This was the first expansion of the Program announced on April 1, which includes postponing or reducing up to 95 percent of employer payments to the Argentine social security agency, as well as a compensatory salary for workers in companies of up to 100 employees who meet conditions such as being in obligatory quarantine or at high health risk, or whose commission-based productivity has been highly affected.
      • On August 21, the government announced it would extend its price freeze on mobile, internet, and television services through the end of 2020, and come 2021, any price increases must gain government approval.
      • On June 18, the government prolonged an April 30 measure extending the date of suspension for bank accounts until December 31 for holders unable to clear bounced checks or pay fees. On June 9, the government extended through December a measure that requires companies to double severance pay for private sector workers let go from their jobs without just cause, a measure that had gone into effect pre-COVID-19 in December 2019 for six months. The government also announced on June 18 a series of non-deductible monthly bonuses for medical workers of up to $590 for the months of April, May, June, July, and August available on August 1, with amounts sum variable depending on length of service and specialty.  
      • On April 9, the Culture Ministry set up a $460,000 development fund to help cultural institutions such as museums and theaters cover operating costs and salaries.
      • On April 8, the government implemented the Provincial Financial Emergency Program, allocating roughly $1.85 billion from the National Treasury Contribution Fund and Trust Fund for Provincial Development to help provincial finances during the crisis.
    • Other updates:
      • Argentina’s poverty rate rose to almost 41 percent in the first half of 2020, according to a September 30 government report, up from 36 percent a year ago.
      • The S&P upgraded Argentina’s long-term sovereign credit rating to CCC+ out of SD (selective default) status on September 7 in light of the government’s restructuring of over $100 billion in debt in foreign bonds and foreign currency, including a $65 billion debt restructuring deal with international creditors announced on August 4, which was accepted by nearly all of the country’s creditors on August 31. 
      • On June 29, the national statistics agency reported a 26.4 percent fall in economic activity in the month of April—the sharpest decline since the early 1990s—as a result of quarantine restrictions. The figure compares to a 17.5 percent contraction in March. The sectors hardest hit include construction, hotels and restaurants, and manufacturing.
      • A June 4 Reuters report indicated that Central Bank reserves fell almost $1 billion in May, leaving reserves at just below $43 billion amid the pandemic, compared to nearly $80 billion in early 2019. A June 4 National Institute for Statistics and Census report revealed a 33.5 percent plummet in industrial production in April 2020 after the pandemic-related restrictions to manufacturing, compared to an 8.9 point contraction the same month the previous year. On March 25, the World Bank had announced it will lend Argentina $300 million in emergency funds, totaling $165 million in 2020 and $135 million in 2021.
      • On May 19, the government put a local crude oil price of $45 per “criollo” barrel to back producers at the major Vaca Muerta shale deposit, while Brent crude prices traded at $35 after global oil prices slid at the same time the pandemic hit. The measure is set to last through 2020.
      • On May 5, the government announced it would receive a $4 billion loan from the Inter-American Development Bank, rolled out over four years, to mitigate economic impacts from the pandemic.
    Bolivia

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    Government response

    Economic impact and measures

    Brazil

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    Government response

    • Reopening plan: In Brazil, reopening measures are determined on a state level. On October 9, the São Paulo state government reported that 76 percent of the state was in Phase 4 of reopening, the second most open of its five phases, through at least November 30, when the next phase update will happen. In Phase 4, bars, restaurants, and beauty salons may operate for up to 12 hours per day at 60 percent capacity. Large public gatherings are still not allowed. On May 27, authorities announced a five-level plan to reopen commercial activity beginning June 1, to be revised according to contagion levels. Rio de Janeiro authorities announced that on November 3 the city went into its final reopening phase, which allows the full reopening of beaches, restaurants, and bars with touchless payment systems, and dance floors at bars and nightclubs. Shops and businesses may also go back to operating without hourly restrictions. The only measures still in effect are social distancing of 1.5 meters between individuals or groups (reduced from 2 meters), and 3 square meters per client in stores and gyms (down from 4 square meters). Rio de Janeiro state authorities reopened tourism on August 12, including prime tourist spots at 50 percent visitor capacity. State authorities announced a gradual six-phase reopening plan to start on June 2. On October 9, Brasília officials announced shopping malls and street businesses could reopen without hourly restrictions, and restaurants no longer have a six-person-per-table limit, though facemasks are still required in public generally. The capital also allowed business conferences of up to 100 people to take place starting September 22, up to 300 people beginning October 27, and up to 500 people as of November 17. On July 2, Brasília announced a reopening schedule for the capital under strict health guidelines, including opening commercial activities on July 7 such as beauty parlors, barber shops, and gyms, while bars and restaurants reopened on July 15. 
    • Mitigation measures:
      • Having experienced the largest contagion outbreak after the United States, Brazil has become a focus spot for the COVID-19 vaccine race, with four candidates in human testing. Bolsonaro, however, announced on September 3 that once a vaccine becomes available, it will not be obligatory. On November 17, the Health Ministry announced it would purchase Pfizer’s COVID-19 vaccine once it receives approval from the national regulatory agency, Anvisa. On November 11, Anvisa allowed São Paulo’s Butantan Institute to resume China’s Sinovac vaccine trial after a two-day suspension following the death of a participant. This came two days after Governor Doria announced that São Paulo began building a facility to produce 100 million doses of the Chinese vaccine, predicted to be ready by September 2021, pending regulatory approval. The state has an agreement to receive 6 million doses by the end of the year. As of October 21, clinical trials of United Kingdom’s AstraZeneca, China’s Sinovac Biotech, United States’ Pfizer and BioNTech, and Johnson & Johnson vaccines were operating in Brazil. The country is also reviewing petitions for a Russian vaccine, the Chinese Sinopharm vaccine, and the U.S. COVAXX vaccine. On June 26, Bolsonaro set aside $356 million to buy the first 100 million doses of the vaccine and support domestic production, and Pazuello forecast the vaccine to be ready at the start of 2021. Despite being a center for vaccine trials, some experts reveal it could take Brazil between two and 10 years to produce vaccines domestically due to the difficulty of technology transfers and the country’s under-invested production facilities.
      • On June 12, the Health Ministry announced it registered more than 970,000 health professionals in the Brazil Counts on Me plan to recruit medical students and health professionals to help on the pandemic frontlines, including those studying to be doctors, nurses, nursing technicians, and pharmacists. This was on the same day that Brazil confirmed the world’s second-highest COVID-19 death toll after the United States after counting 900 deaths in 24 hours.
      • Bolsonaro and his U.S. counterpart Donald Trump issued a joint statement announcing that the United States would send 2 million doses of the disputed hydroxychloroquine drug to Brazil for prophylactic and therapeutic treatments and that the two countries will conduct clinical trials on the drug’s efficacy. 
      • On May 21, at least eight states said they will not follow expanded May 20 guidelines issued by the Health Ministry, which is temporarily being headed by General Pazuello. Those guidelines encourage the use of antimalarial drugs chloroquine and hydroxychloroquine to treat patients with mild COVID-19 symptoms. This came after pressure from Bolsonaro, to push the drugs became a point of contention between the president and his prior top health officials. Bolsonaro removed Luiz Henrique Mandetta on April 16 and replaced him with Nelson Teich, who in turn resigned on May 15, after both clashed with the president over the guidelines recommending hydroxychloroquine for patients with mild symptoms.
      • On April 15, the Supreme Court affirmed that states and municipalities have the autonomy to regulate social distancing measures.
    • Travel and border restrictions: On September 24, the federal government announced foreigners could enter the country once again via air, though, entry by land borders is restricted for another 30 days. Entry to the country hinges on foreigners purchasing valid health insurance covering the entirety of their stay. Washington restricted the entry of non-U.S. citizens from Brazil into the country starting May 26.
    • School closings and restrictions: The São Paulo state government announced on September 18 that public and private schools may resume in-person classes on October 7, with the exception of lower and middle public schools, which will reopen on November 3. That said, local authorities will have the final word on if/when to open. On September 21, the Federal District of Brasília reopened schools, and on August 10, the state of Amazonas resumed in-person classes. While some states suspended in-person classes as early as March 12, school was suspended nationally on March 26, per Unesco’s COVID-19 impact on education tracker. The National Council of Education Secretaries published a document on June 26 issuing protocols for the eventual reopening of school. On June 30, the Chamber of Deputies approved a provisional measure adjusting the minimum number of days in the school year due to the pandemic. Preschools are not required to meet the 800 hours and 200 days of school per year minimum while middle and high schools must complete the 800 hours but not 200 days.
    • Other updates:
      • Brazil held its first round of rescheduled municipal elections on November 15. The elections were originally scheduled for October 4, but Congress postponed them in July due to the pandemic. Runoffs will take place where necessary on November 29.
      • In an Ibope poll released September 24, 40 percent of Brazilians rated Bolsonaro’s government as “good/great”—the highest level since he took office in January 2019—while 29 percent rated his government as “bad/terrible.” 
      • The Supreme Court ruled on August 5 that the government must take measures to prevent COVID-19 spread in vulnerable indigenous communities and gave Bolsonaro 30 days to come up with a plan. On July 8, Bolsonaro vetoed 16 sections of a law that mandated the government provide drinking water, disinfectants, and hospital bed quotas for indigenous peoples during the pandemic, while leaving the proposed testing supplies, ambulance services, and medical equipment. On June 30, the military delivered medical supplies and 13,500 chloroquine pills by helicopter to Amazonian indigenous groups at the Venezuelan border. This came after, on April 10, the government announced measures to protect over 800,000 members of indigenous communities from the virus.

    Economic impact and measures

    • GDP forecasts: The Economic Commission for Latin American and the Caribbean projects Brazil’s economy will contract 9.2 percent in 2020, according to an October update. On September 1, the Brazilian Institute of Geography and Statistics (IBGE) reported a 9.7 percent GDP contraction in the second quarter of 2020, compared to a 5.9 percent contraction in the first quarter.  Brazil’s economic policy secretary said on July 22 that the country's economic downturn will be closer to -4.7 percent. On June 25, the Central Bank cut its 2020 GDP growth projections to -6.40 percent, down from a previous 0 percent on March 26. A June IMF report projected Brazil’s GDP will contract 9.1 percent in 2020. Previously, a June 8 World Bank report projected that Brazil’s GDP will contract 8.0 percent in 2020, which is 3.0 points more than what the bank forecast in April. 
    • Fiscal stimulus and economic policy:
      • On October 30, the government announced that public spending to mitigate the economic effects of COVID-19 reached $116 billion in the first three quarters of 2020.
      • Guedes, speaking alongside the president on August 19, was optimistic about the country’s economic recovery and said that financing for company salary payments will more than double over the course of the year to reach more than 200,000 employers. The economy minister also said the government will offer credit between $36 and $54 billion for small businesses by December 2020. Previously, however, as the economy heads into recession, the Central Bank’s rating committee, known as Copom, said on June 15 it will lower interest rates by 0.75 points on June 17 to 2.25 percent, where they will stay until the end of the year. Copom also said it plans to gradually increase the rates, with the goal of ending 2021 at 3.0 percent. On May 6 the Central Bank cut the interest rate by 75 points
      • On June 8, development bank BNDES suspended interest and debt payments owed by states and municipalities through 2020 due to the economic impacts of COVID-19, a measure that could save states up to $790 million. This is additional to the roughly $388 million in credit loans the bank announced it would give out to the health sector in March. 
      • On May 29, the Central Bank’s National Monetary Council extended a trio of measures through the end of the year: caps on banks increasing dividends, salary reductions for banks’ senior staff, and limits on financial institutions’ share buybacks. 
      • On May 27, Bolsonaro signed a law suspending local governments’ debt payments to the federal government, as well as credit renegotiations, during the state of emergency. The president gave a line-item veto, however, to a section of the bill that proposed salary increases for government employees, ruling out pay raises until December 2021, with the exception of frontline healthcare workers. 
      • On May 19, the president approved a law creating credit lines for micro and small businesses. These loans can be for up to 30 percent of the business’ 2019 profit and have a 36-month amortization period.
      • On April 22, the government announced the $4.7 billion “Pro-Brazil” economic plan, which will roll out in October 2020. No members of the Economy Ministry attended the announcement.
    • Social programs:
      • On September 22, the Economy Ministry announced a $157 billion budget deficit this year after calculating the extended emergency aid packages announced on September 1 to informal and unemployed workers, as well as beneficiaries of the Bolsa Família welfare program through the end of the year. August 20 Economy Ministry reports show that unemployment insurance claims in the first two weeks of August fell 23.2 percent from the second half of July. The Ministry previously reported that these payments would total over $28 billion instead of the original $18.2 billion. Ministry reports show that unemployment insurance claims in the first two weeks of May rose by over 76 percent compared to the same period in 2019.
      • On May 15, Bolsonaro vetoed an April 22 Senate-approved expansion to the emergency universal basic income plan, first signed by the president on March 31, that made informal workers who are not registered in the Citizenship Ministry eligible for benefits. The expansion to include teenage mothers and single parents remains. The measure allows companies to reduce worker salaries for three months or suspend them for two months, and the government will subsidize those affected proportional to the unemployment benefits they can claim.
      • On May 7, Congress passed the constitutional amendment—previously passed by the House on April 3—creating a “war budget” to separate COVID-19 spending from the federal budget and granting the Central Bank bond-buying power to help calm financial markets. The measure is set to last until the end to the state of calamity declared on March 20, allowing for additional federal funds to combat the pandemic. When the Chamber of Deputies first passed the amendment in April, the government also freed up roughly $1.8 billion to support public health, adding about $2.7 billion more to the healthcare budget. The government, when announcing the state of calamity, said it could result in a deficit of over $30 billion, above the predetermined ceiling of roughly $24 billion.
      • On April 27, Brazil’s bank industry group Febraban said that financial institutions have postponed roughly $3.91 billion in debt payments thus far that are due in the next few months to help consumers and companies amid the pandemic. In March, the group’s top lenders said they would offer a grace period of two to six months to pay debt installments. On April 7, the federal government added $4 billion into workers’ severance fund, making possible a withdrawal of $200 per worker, available on June 15. Guedes had announced a stimulus measure on March 16 of over $29 billion to accelerate social assistance payments, defer corporate taxes, and ease severance fund access. 
    • Other updates:
    Chile

    Latin American GDP Dives as COVID-19 Deepens

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    Government response

    • Reopening plan: On July 20, the government announced a new “Step by Step” reopening plan based on a district’s infection rate. The plan’s five phases are: quarantine, transition, preparation, initial opening, and advanced opening. By November 19, 63 districts will be in stage four, the initial opening phase, where restaurants may operate at 50 percent capacity, cinemas may reopen at 50 percent capacity without food sales, and gyms may open at a 10-person limit abiding by a two-meter distance rule. In October, the majority of the country was in the third phase, the preparation step, and some districts in the south and central regions have moved into the initial opening phase. On October 19, 29 districts in the Santiago metropolitan region went into phase four.
    • Mitigation measures:
    • Travel and border restrictions: On November 23, Chile’s Arturo Merino Benítez International airport opens to foreign travelers, who must take a PCR test at least 72 hours before their flight and test negative, travel with health insurance, complete a Health Passport, and update a survey tracking their whereabouts for 14 days upon arrival. Those arriving through December 3 from countries the WHO deems “high risk” must quarantine for 14 days in Chile.  Starting September 28, the government allowed domestic travel between districts in the last three phases of the reopening plan. The government announced it would close all borders as of March 18, allowing only Chilean citizens to reenter the country with an obligatory two-week quarantine.
    • School closings and restrictions: The Education Ministry announced on June 12 that schools will remain closed until further notice, and they are working with the Health Ministry to assess when schools can safely reopen. The government first suspended in-person classes in schools on March 15.
    • Other updates:
      • An October 15 Cadem poll showed Piñera’s approval ratings fell 8 points to 16 percent from a poll two weeks earlier, while 75 percent disapprove of his government. Also, 37 percent of those surveyed believe a new Constitution will better the country.
      • On October 8, Reuters reported that Chilean scientists are investigating a possible COVID-19 mutation in the southern Patagonia region of Magallanes, which has seen a large second wave of infections in late September and early October. 
      • On June 13, Piñera named Dr. Enrique Paris the new health minister, after Mañalich resigned amid rising pressures to revise the methodology of COVID-19 cases. Mañalich acknowledged the country “requires new leadership” in the next phase of its pandemic response.
      • In a May 17 televised address, Piñera announced new measures, including: distributing 2.5 million food baskets to low-income families, establishing two new funding institutions to make loans more readily available for small business, implementing a mental health plan, increasing the number of shelters for patients who may not have appropriate conditions for isolation at home to complete quarantine if known to have the virus, and committing to a better system of releasing more localized epidemiological information. In addition, political parties and the Electoral Service on March 19 agreed to postpone the constitutional referendum to October 25.

    Economic impact and measures

    • GDP forecasts: A September 2 Central Bank report showed a lighter GDP contraction for 2020 of between 4.5 and 5.5 percent, compared to a previous June projection of 5.5 to 7.5 percent. A June 8 World Bank report projected Chile’s GDP will contract 4.3 percent in 2020. In April, the IMF forecast a contraction of 4.5 percent in 2020, down from forecasts in January of 0.9 percent growth and further still from 3.0 percent growth in October. The IMF’s numbers are below the Central Bank’s projections of a 1.5–2.5 percent contraction in 2020.
    • Fiscal stimulus and economic policy:
      • On November 18, a Senate commission approved the possibility of making another 10 percent of pension funds available for early disbursement.
      • Some 14 million Chileans receive some form of aid, according to Piñera, who spoke about the government’s support to the middle class on August 14. The president said that to this date, over one million people received the Middle Class Plan’s $626 bonus approved by Congress on July 30 to those making between $525 and $2,000 monthly in 2019, as well as those who had a 30 percent or higher pay decrease during the pandemic. He also announced that the government approved over 550,000 requests for small loans of up to $815. Previously, Piñera announced on July 5 a new $1.5 billion stimulus package aiming to help 1 million middle class families, including zero-interest loans, subsidized rents, and mortgage deferments for up to six months.
      • On August 11, the Finance Ministry announced a roughly $69 million cut to nine regions’ budgets in what the Ministry called a “reassignment” of money from areas with slower spending rates to others that are running low on pandemic-related funds.
      • Though the president opposed a pension reform measure that allows citizens to take out 10 percent of their savings in the national Pension Fund Administration system, he signed it into law on July 24, a day after Congress passed it. Over 80 percent of Chileans support the measure, per a July Cadem poll, which gives Chileans ready access to cash to deal with the economic impact of the pandemic.
      • Piñera announced the distribution of an additional $120 million for municipalities across the country to fight the virus and keep public services operational as part of the Solidary Municipal Fund. This sum is a 20 percent increase from initial funds distributed in May.
      • On June 14, the president detailed a $12 billion emergency plan after the bill passed Congress that morning in a bipartisan agreement. The plan includes funds for the Emergency Family Income Project, local governments, civil society organizations, increased unemployment protections, and health services.
      • The government announced new measures for economic relief on May 18 to small- and medium-sized businesses, aiming to give $150 million to 180,000 businesses nationwide. On April 28, Piñera announced a law freeing up to $24 billion for companies to access loans to benefit nearly 100 percent of Chile’s businesses, who provide 84 percent of employment. The credit line offers a period of 48 months for repayment at 0 percent real interest rates. On March 27, the government announced financial help to small companies by suspending stamp taxes—imposed on documents that show money lending operations—for six months and extending a credit line to public bank BancoEstado worth $500 million for emergency loans.
      • On May 12, the Central Bank requested a flexible two-year IMF credit line of $23.8 billion. Finance Minister Ignacio Briones said the loan is to bolster the Central Bank’s “solid position” and would allow the financial institution to complement its international reserves.
      • Previously on April 8, the government announced the second phase of the economic emergency plan with new measures aiding 2.6 million informal workers to be be rolled out in three ways: a $3 billion guarantee fund for small companies from BancoEstado, a fund of up to $2 billion for workers to access emergency jobs and benefits, and the implementation of entities to regulate the Central Bank’s liquidity facilities. Briones said the measure will put Chile’s fiscal deficit at 8 percent of GDP. The first phase of the plan was announced on March 19, using a special constitutional clause to free up nearly $11.7 billion without congressional approval, a measure equaling roughly 4.7 percent of annual GDP.
      • The government announced on March 23 it would delay a 2020 bond issue of up to $8.7 billion to help finance the previously announced emergency package to protect jobs amid the coronavirus crisis.  
    • Social programs:
      • On June 13, the Ministry of Social and Family Development announced the second distribution of food products to benefit over 3 million low-income Chileans under the Food for Chile program. The president announced the food campaign on May 18, with the aim to distribute 2.5 million food baskets across Chile. On June 16, Piñera signed into law a project widening the Emergency Family Income project that was announced on April 20 to complement wages for vulnerable families by up to roughly $500 per family with informal income and $125 for those with formal earnings. This extension of the economic relief measure may now reach up to 5.6 million Chileans—a 20 percent increase in outreach to 80 percent of the population.
      • Previously on April 15, the government announced a $11.4-million Winter Plan to help people on the streets as the country enters the cold season in which the virus could spread more easily. The plan establishes 180 care centers, including 22 centers that will focus just on the elderly and vulnerable populations, as well as more than 1,000 ICU beds and 80 drive-by facilities that will be able to attend to over 4,000 people a day. This comes after an April 2 Health Ministry announcement for mandatory quarantine and health checkpoints to be established at 950 senior nursing facilities. 
      • On April 17, 2.7 million Chileans started receiving relief from the COVID-19 Bonus, approved on March 28, as part of an economic plan allowing low income families to delay utility payments without having services cut, providing $60 per dependent to each of these families, and passing job protection legislation for those who can’t work during quarantine. 
    • Other updates:
      • Fitch Ratings Agency downgraded Chile from an A+ to A- standing on October 15 due to a destabilizing of public finances, largely resulting from greater government expenses to mitigate recent social unrest, and due to uncertainty given the nearing October 25 constitutional referendum. Also on October 15, the Central Bank announced it will maintain low interest rates at 0.5 percent given the pandemic.
      • On August 3, the Central Bank announced that economic activity dropped 12.4 percent in June 2020 in comparison to the same month in 2019. May numbers showed a 13.5 percent drop compared to the previous year.
      • On March 24, Piñera announced a new labor law regulating and facilitating remote work, including mandatory requirements that stipulate work vs. personal time. 
      • Also March 24, the government established a maximum cost of $30 for the COVID-19 test in private healthcare facilities.  
    Colombia

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    Government response

    Economic impact and measures

    • GDP forecasts: On June 8, the World Bank released updated projections that indicated the Colombian economy will contract by 4.9 percent in 2020, down from a –2.0 percent projection in April and further still from 3.6 percent growth projection in October 2019. On March 27, S&P downgraded Colombia’s credit rating from stable to negative, warning that the country could lose its investment grade status in the next 12 to 18 months. Still, Colombia is in a position to lead regional recovery, said the IMF’s Alejandro Werner in an interview on April 16, due to its resilience and strong internal demand.
    • Fiscal stimulus and economic policy: On July 22, Vice President Marta Lucía Ramírez, Commerce Minister José Manuel Restrepo, and ProColombia President Flavia Santoro presented the government’s plan for economic reactivation post-COVID. The plan incorporates 13 strategies, with special focuses on promoting job creation, the knowledge economy, and international e-commerce. The goal of the plan, said Ramírez, “isn’t to figure out how we can see more of our products, but rather how we produce more of what the international market demands, what the world wants to buy.” The plan also aims to cut unemployment, currently over 21 percent, to 6 percent by the end of 2022.
    • Social programs:
      • Colombia’s lower house approved a “clean slate” law on May 27 that would give debtors a yearlong grace period to catch up on their payments, and those who do would have any negative credit reports erased at the end of the 12 months. The bill, which also includes protections for victims of identity theft, will go to a conference committee first before it heads to Duque’s desk for signing.
      • Duque announced a set of economic measures on March 24, including disbursements of about $40 to 3 million low-income families, easing some conditions for student loan repayments.
    • Other updates:
      • The Colombian economy contracted 9 percent in the third quarter, an improvement from the 16 percent contraction in the previous one, Colombia’s national statistical agency, known as DANE, reported on November 16.
      • Brent oil prices, the benchmark for Colombian oil exports, rose above $36 on May 26, after dropping below $20 per barrel on April 21. In order to maintain exploration and production levels, Colombia needs a barrel price of between $40 and $45. Oil export revenues represent 2.7 percent of Colombian GDP, compared to 11.3 percent in Venezuela.
      • On May 1, the IMF approved a renewal for a two-year flexible credit line for Colombia totaling $10.8 billion. Additionally, the Colombian government asked for a total of $3 billion from the World Bank, Inter-American Development Bank, and the CAF – Development Bank of Latin America. Local economists estimate that one month of national quarantine costs between $15 and $20 billion, or about 4.5 to 6.1 percent of GDP.
      • Manufacturing production in April fell almost 36 percent year-on-year, DANE reported on June 12, the biggest single-month decline since 1991. Auto parts, transportation, and footwear manufacturing took the biggest hits of the 39 sectors evaluated. Foods, grains, and baked goods, meanwhile, were among the half dozen sectors that grew. Commercial activity overall was down 43 percent.
      • Unemployment was at 19.7 percent in July, down from 21.4 percent in May, but still the highest rate of OECD member countries. Of the unemployed, some 43.5 percent said they’d lost their job due to the pandemic, according to a report released by DANE at the end of June. That same report found that, in the country’s 13 largest urban areas, unemployment is up to 24.5 percent, compared to 11.2 percent in the same month a year earlier; a third of unemployed urban residents say they’re no longer able to keep up with bills and payments.
    Costa Rica

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    Government response

    • Reopening plan: Alvarado announced on April 27 that the country would begin to ease some restrictions starting May 1 and that its multi-phase gradual reopening plan would begin May 16. Below is a list of the reopening phases and strategies:
    • ​Mitigation measures: Costa Rica was credited as being successful in its efforts to slow contagion in the early days of the pandemic, but a spike in cases in June pushed officials to reconsider their opening strategy. Prior to the pandemic, Costa Rica already had a color-coded national emergency alert system that ranged from green (for providing information for an upcoming phenomenon) to red (all emergency response teams activated). Between the two, yellow activates the country’s national emergency commission and signifies that residents should take precautionary measures. In the context of the pandemic,  an orange alert signals suspected and confirmed cases will be evacuated and isolated.
    • Travel and border restrictions: Costa Rica will open its borders to all countries beginning November 1. Travelers must fill out an epidemiological survey and purchase traveler’s medical insurance. As of October, people entering the country are not required to provide a negative COVID-19 test to enter the country. The list of countries whose tourists are welcome to enter has been expanding since August 1 with the gradual opening.
    • School closings and restrictions: The country’s Education Ministry announced August 28 that in-person classes will not resume for the remainder of the year, instead continuing virtually as has been the case since mid-April. Costa Rica ordered universities to close and suspended public and private schools starting March 16 through April 4. 
    • Other updates:
      • On April 11, Costa Rican authorities opened an air base at the country’s border with Nicaragua to reinforce border closure policies along the normally high-traffic shared border. The base came with heightened military personnel and surveillance to prevent people crossing south, according to Vice President Epsy Campbell, in light of the fact that the Nicaraguan government has instituted minimal measures to slow contagion within its borders. A May 14 letter signed by 52 out of the 57 members of Costa Rica’s Legislative Assembly urged the director of the Pan American Health Organization to take “forceful and urgent” actions regarding Nicaragua, stating that the Ortega administration’s response to the pandemic was a danger to its neighbors.
      • The WHO, along with Alvarado, launched on May 29 the COVID-19 Technology Access Pool, an initiative that aims to make vaccines, tests, treatments and other health technologies to respond to COVID-19 widely accessible. The initiative was Alvarado’s idea; on March 24 he requested that the WHO create a repository of information available to all member countries.

    Economic impact and measures

    • GDP forecasts: Costa Rica’s Central Bank (BCCR) announced on July 31 that it predicts the country’s economy will shrink by 5 percent this year, its largest fall in four decades. Prior to the BCCR figures, the government announced on July 10 that the country’s fiscal deficit will increase to 9.7 percent of the GDP compared to the 6.96 percent deficit of 2019. Both April and June projections by the World Bank show that Costa Rica’s economy will contract by 3.3 percent in 2020.
    • Fiscal stimulus and economic policy: Costa Rica is in negotiations with the IMF to receive $1.75 billion in Extended Fund Facility (EFF) assistance. Alvarado proposed additional tax measures as part of the negotiations, only to retract the proposal after mass protests. Alvarado announced on July 13 that the government is making its largest cut to public spending in the country’s history due to the pandemic. The cuts will be equivalent to 1 percent of Costa Rica’s GDP and will include every sector except social programs. Prior to that, the government announced on May 8 a $1.5 billion economic package including loans; assistance for micro-, small-, and medium businesses; and a plan to attract private investment. The loans are available to all productive sectors and may be used as seed capital assistance or for business-reopening costs. Costa Rica’s Central Bank announced on April 29 that the IMF had granted Costa Rica an emergency loan worth $508 million to mitigate the effects of the pandemic. A month earlier, Costa Rica’s national emergency commission received a $1 million aid package from the Central American Bank for Economic Integration.
    • Social programs: The government launched an online financial support platform on April 9 called Plan Proteger through which Costa Ricans who have lost their jobs or are suffering income insecurity may request a monthly bonus of up to $220 for three months. On March 19, Alvarado signed into law tax relief legislation that placed a moratorium on four types of taxes from April through June: the Value-Added Tax, profit taxes, selective consumption taxes, and tariffs on imported merchandise.
    • Other updates:
      • Unemployment in Costa Rica reached 22 percent for July through September, an improvement over the record-high rate of 24.4 percent covering May through July. Women are disproportionately affected, facing 29.1 percent unemployment, compared to 19.3 percent for men.
      • As lawmakers discussed cutting 15 percent of the government’s highest wages to offset the economic impact of the pandemic, Alvarado announced on July 16 that he would voluntarily reduce his own salary to meet the 15 percent spending cut.
      • S&P Global Ratings downgraded its rating for Costa Rica from B+ to B on June 9 citing the effect of the pandemic on the country’s economy, following a similar downgrade from Moody’s on June 2.  
    Cuba

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    Government response

    • Reopening plan: On June 11, the government unveiled its three-stage reopening plan culminating in a “new normal”, where all productive activities and services resume and Cubans assume “personal responsibility” in adhering to basic social distancing guidelines, such as mandatory use of masks in closed spaces and regular disinfecting of work and public spaces. 13 out of the island’s 15 provinces fully transitioned to a “new normal”, while the provinces of Ciego de Ávila and Sancti Spíritus remain closed due to active transmission of the virus, and as Havana enters phase 3 of reopening. After a surge of cases in late October, Pinar del Río joined the list of provinces declared to have active transmission, the stage under which it still finds itself as of November 17.
      • Hospitals and outpatient services will reopen at 50 percent capacity under phase one and then increase to 75 percent and 100 percent capacity under phases two and three respectively.
      • Under the transmission phase, the Defense Councils across the country set up quarantines in neighborhoods or municipalities with suspected or confirmed local transmission. 
      • Under phase one, hotels will reopen to in-country tourism after domestic travel was suspended since March 23, while face mask use and social distancing guidelines will remain in place. 
      • Workers who saw their jobs interrupted due to the pandemic will continue to receive 60 percent of their basic salary during the first two phases, as has been the case since April. 
      • Public and private transportation––which has been shut down since April 11––will begin to operate under phase two.
      • Under phase three in Havana, the least risky services and productive activities, along with public transportation, resume while following social-distancing guidelines. The restrictions still in place include the suspension of licenses for independent taxi drivers and the requirement that hotel staff quarantine for seven days before returning to work.
      • Díaz-Canel said on October 9 that if outbreaks occur under the “new normal,” the area of the outbreak will close rather than the entire province.  
    • Mitigation measures: By the start of July, every province in Cuba had moved past the “limited local transmission” phase initially decreed for the entire country on April 7. However, on August 8, the government announced that the Havana province and capital would revert to said phase and be placed on lockdown after several outbreaks within the region. Then, on August 28, Havana’s governor announced a stricter 15-day lockdown for Havana to go into effect September 1, including a nightly curfew between 7 p.m. and 5 a.m. and a ban on interprovincial travel from the region. Havana entered phase 3 of reopening on October 12.
      • Cuba began Phase 1 trials of its second vaccine candidate, Soberana 2, on November 2. Trials for its vaccine candidate, Soberana 1 began on August 23.
      • On May 12, the Health Ministry published in the government’s official gazette the sanitary and health protocols to follow during the pandemic, though these measures had largely been in place since early April. The text includes that those who experience symptoms similar to those of COVID-19 or have had contact with someone infected with the coronavirus must report to the nearest health facility for further guidance. When asked by a health official, Cubans must also provide any personal information deemed necessary for the “effective prevention of the transmission of COVID-19.” 
    • Travel and border restrictions: In a TV appearance on October 16, Transportation and Tourism Ministers Eduardo Rodríguez Dávila and Juan Carlos García Granda announced that interprovincial bus transportation (except to Ciego de Ávila and Sancti Spírtus) restarts on October 19, while train service will gradually restart October 24. Airlines can also travel to any provincial airport under the “new normal.” Though still in phase 3 of reopening, Havana officially opened the José Martí International airport on November 15. International marinas have resumed operation and are accepting cruises. Cuban nationals, foreign residents, and non-residents alike are permitted to travel domestically and in and out of the country. All travelers must sign a declaration about their state of health upon arrival and will be administered a free PCR test, and those who test positive will be isolated for 14 days. Tourists are also now allowed to stay in casa particulares (private homestays). Starting July 1, select areas in the northern region of the island began welcoming international tourists for all-inclusive vacations, allowing the government to isolate tourists from the general population. International commercial flights were suspended April 2 after the country initially announced that it would remain open to tourism in mid-March.
    • School closings and restrictions: Schools reopened in September after being closed since late March in provinces under the “new normal,” while schools in Havana opened on November 2. 
    • Other updates:
      • Cuba has deployed medical brigades to over 39 countries to support local efforts. 

    Economic impact and measures

    • GDP forecasts: Cuba’s Minister of Economy and Planning estimated in January that the country’s economy will grow by 1 percent this year, while other experts project a contraction of up to 10 percent.
    • Fiscal stimulus and economic policy: The government announced a series of economic measures on July 16 that went into effect on July 20. Among the measures, the government announced that more markets would accept dollars and that the tax imposed on the dollar would be eliminated.
      • Per a May 4 Granma report, Cuba’s Council of Ministers approved a series of adjustments to the island’s fiscal plan for 2020 due to the pandemic, including the prioritization of allocating funds to boost the agricultural and food production sectors.
      •  On March 26, the government announced the temporary suspension of more than 16,000 work licenses for entrepreneurs, including landlords, contract workers, restaurant workers, and craftsmen.
    • Social programs: Between April 1 and April 7, Cuba’s Ministry of Labor and Social Security announced a series of measures aimed at protecting workers, including that workers who must undergo a 14-day isolation period will receive 100 percent of their basic salary for the time period. Older and at-risk workers were instructed to stay home and will receive 100 percent of their basic salary for the first month and 60 percent thereafter.
    • Other updates:
      • On April 1, the government announced that prices for cell phone data and voice usage would be lower in the mornings. Rates for national long distance calls were also reduced by 25 percent between 6 a.m. and 5:59 p.m. and by 50 percent between 6 p.m. and 5:59 a.m. The government also added 10 hours to the at-home internet service Nauta Hogar for the month of April. On April 22, these measures were extended until May 30. Then, on May 30, these measures were extended in part until June 30.
    Dominican Republic

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    Government response

    • Reopening plan: Then-President Danilo Medina announced on May 17 the government’s plan to partially reopen the Dominican economy to go into effect on May 20. Since then, here is a list of what has happened with the plan:
      • Although phase three of the country’s reopening was tentatively scheduled to go into effect June 17, the government decided on June 16 to postpone that move after cases peaked during the initial two phases.
      • Before that, the country began phase two of its four-phase reopening plan on June 3. Under the second phase, public buses began running at 60 percent capacity, some commercial retailers reopened, and churches were allowed to resume their Sunday services with reduced attendees.
      • The plan went into effect with phase one May 20 when micro- and small-sized businesses were able to reopen with up to 50 percent of personnel, and medium to large businesses with up to 25 percent. The public sector reopened at 50 percent, and state public transportation began to run at 30 percent capacity.  
    • Mitigation measures: On July 20, outgoing President Medina declared a 45-day national state of emergency with new restrictions starting July 21, reverting to a decree the government previously issued in mid-March and extended through the end of June. Luis Abinader, who previously tested positive for COVID-19 and recovered, was sworn in as the country’s president on August 16 and, upon assuming office, his administration presented a new plan for combating the pandemic. Starting in October and extended until December 1, a modified national curfew is in effect between 9 p.m. and 5 a.m. on weekdays and 7 p.m. and 5 a.m. on weekends and holidays. The new curfew allows two additional hours of activity on the weekend compared to September’s curfew update. Below is a chronology of measures taken by both presidencies:
      • Under Medina’s state of emergency, two curfews were in effect starting July 21, initially for a period of 20 days but then extended for 25 more days on August 8 through September 3. The emergency decree divided the country into two groups based on contagion within the country’s 31 provinces and the National District and assigned two different curfews––one stricter than the other––to each group accordingly: 14 provinces and the National District, including the capital, had a curfew between 7 p.m. and 5 a.m., while the remaining 17 provinces have an 8 p.m. to 5 a.m. curfew. 
      • Before the July nationwide state of emergency decree, the government declared the entire national territory as being under an epidemic on June 30, which granted the government the power to institute new measures to mitigate and control the spread of the coronavirus including suspending most commercial, social, and recreational activities.
      • The Health Ministry announced on May 5 that authorities would begin to intervene in the most affected provinces with the help of the country’s Armed Forces, the National Health Service, the Center for Emergency Operations, and other official entities. The interventions, which began on May 14, include measures such as setting up rapid testing centers, limiting movement within designated zones, and decontaminating hospitals and other medical facilities, supermarkets, and malls. The Ministry designated a total of seven areas––each made up of a handful of municipalities with the most confirmed cases––to be inspected.
      • On April 22, Medina inaugurated the Command, Control, Communications, Computers, and Cybersecurity Center (C5i), a new agency housed within the Ministry of Defense that works in conjunction with the country’s Armed Forces to monitor and enforce measures, including enforcing at-home quarantines and moving patients to medical facilities.
      • Wearing face masks in public became mandatory on April 16. 
    • Travel and border restrictions: The Dominican Republic reopened its borders for international tourism on July 1. International cruise ships are allowed to port in the Dominican Republic as of November 1. A new tourism protocol, which begins September 15, will no longer require tourists to present a negative test result upon arrival. The government will perform random tests at their airport instead. Also on said date, the government will begin offering free health insurance to tourists to cover any coronavirus-related costs, through the end of the year.
    • School closings and restrictions: The 2020-2021 school year began on November 10 for all students and runs an additional 45 days to make up for lost time. It is being held remotely via television, radio, and the internet. Though schools were scheduled to open August 24, the Medina government announced June 30 that in-person learning would remain suspended for the foreseeable future. Medina ordered public schools and universities to close and suspended in-person classes on March 17. 
    • Other updates:
      • Despite a spike in cases, the Dominican Republic held general elections on July 5 and elected opposition candidate Luis Abinader of the Modern Revolutionary Party (PRM) for president. Abinader had just a month prior announced that he and his wife had tested positive for COVID-19. Turnout hovered around 50 percent, and a series of safety protocols were in place during election day, though the Organization of American States reported lapses in physical distancing throughout the day. The executive director of the presidential committee tasked with managing the COVID-19 pandemic warned that he anticipates cases will surge in the weeks after the election. The vote was originally scheduled for May 17, but the country's Electoral Board pushed them back in mid-April to July 5. This is the second election held in the Dominican Republic during the pandemic, and the first general election in Latin America during the crisis. In fact, Medina acknowledged on April 22 that the government did not move to combat the spread of the coronavirus in early March when the first case was confirmed due to municipal elections scheduled for March 15.

    Economic impact and measures

    • GDP forecasts: The Dominican Central Bank announced in November that the country’s economy contracted by 8.1 percent in the first nine months of the year. Projections by the World Bank published in June forecast that the Dominican economy will contract by 0.8 percent this year, a decrease from the April forecast in which the Bank estimated that the economy would neither grow nor contract this year.
    • Fiscal stimulus and economic policy: Between April 21 and April 28, the Dominican government, through its special agricultural fund (FEDA), approved $1.8 million in aid for the agrarian sector to boost production and cultivation. On April 23, the country’s Central Bank approved a series of monetary measures, including lowering three types of interest rates and instituting liquidity measures for the national currency. Prior to that, on March 26, the Central Bank approved roughly $1.5 billion for banks to have available for clients, and $622.4 million in credit for export industries. On April 29, the IMF approved $650 million in emergency assistance for the Dominican Republic.
    • Social programs: On March 25, Medina announced an economic package worth over $591 million to alleviate salary losses and food insecurity. The measures include a three-month moratorium on monthly minimum payments on credit cards as well as waivers of late fees. Starting on April 1 until May 31, the 811,000 families already subscribed to the country’s social welfare program Tarjeta de Solidaridad will receive a monthly payment ranging from $27 to $130 for foodstuffs and first aid products. The president added that 690,000 other families outside the social welfare program would also receive this assistance. An additional 70,000 homes were added to the program on April 23.
    • Other updates:
    Ecuador

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    Government response

    Economic impact and measures

    El Salvador

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    Government response

    • Reopening plan: El Salvador’s management of the pandemic has been marked throughout by institutional battles that predated COVID-19’s arrival in the country and concerns the government is using the coronavirus as an excuse for repression. The same is true of the reactivation plan. The conflicts have even given rise to U.S. warnings to Bukele of aid cuts, per a September 3 Associated Press report. But there’s a reason why Bukele is confident about pushing back: 80 percent of Salvadorans deem his government’s pandemic management as “very good” and another 15 percent say it’s “good,” per a June 29 CID-Gallup poll. Still, on June 14 Bukele’s government issued Decree 31 ending the quarantine—which began on March 14—on June 16. While the five-phase plan was initially set to start shortly after it was announced and run through August 20, the Bukele government repeatedly delayed entering phase 2 and reset subsequent phase dates. With no legal clarity around reactivation, the country proceeded to a full reopening on August 24. Below are highlights of the conflict over and steps taken as part of the reopening plan:
      • At the end of October, the Assembly passed legislation prohibiting national quarantines and protecting individual rights. Per the law, only those who have tested positive or been exposed to the coronavirus must face quarantine. Localized quarantines can only occur in areas that have seen more than a 10 percent increase in cases. The legislation appears to be an attempt to prevent Bukele from decreeing the kinds of strict measures taken early in the pandemic.
      • Despite various plans presented, El Salvador’s complete reopening of the economy began August 24. The Bukele government’s July 30 Decree (number 32) sought to reschedule reopening dates, but on August 7, the Supreme Court declared the decree unconstitutional due to its limits on rights, saying the move requires a measure from the legislature to enforce. On August 10, Bukele said of the Court: “If I were a dictator, I would have shot them all. You save 1,000 lives in exchange for five.” The court’s ruling allowed for Decree 32 to extend until August 23 to give the legislature and the president time to come to agreement, which did not happen, and the Bukele government confirmed on August 22 that—with no legislation in place to prohibit economic activities—reopening would proceed two days later.
      • On August 19, the Supreme Court overturned Bukele’s veto of a legislative proposal approved June 12 that called for implementation of a four-phase reopening plan starting June 16 and ending July 6. Bukele responded to the decision by saying: “What do we do now? Go back in time?” and called the decision “inconsequential.”
      • On June 24, the Bukele government submitted a proposal to the National Assembly for a new 15-day state of exception to restrict certain rights as a containment measure—despite a reopening plan being put in place. Different from a state of emergency, the prior state of exception expired in April (see “Mitigation Measures” below). On June 29, Alabí said that periods of states of exception could alternate with periods of economic reactivation. On June 30, legislators said that, rather than a state of exception, they were assessing a plan for controlled quarantines focused on areas with high rates of contagion or mortality. However, on July 4, the executive branch threatened to veto local-level states of exception, saying doing so would be unconstitutional and restrict human rights.
      • As of June 17, El Salvador’s Constitutional Court was considering at least three petitions that challenge Bukele’s Decree 31 on the grounds that it restricts constitutional rights related to freedoms of movement and transportation. Meanwhile, the president, while announcing the aforementioned decree, complained that his government had developed a prior law in accordance with an agreement made with the Constitutional Court, only to have the Court deem it unconstitutional. Both the Court and the National Assembly responded by denying having come to such agreements during meetings in recent months with Bukele. Bukele also had suggested that he had held a meeting with U.S. Ambassador Ronald Johnson about the law surrounding the quarantine. The Embassy denied having authorized any laws and said it respected El Salvador’s sovereignty. On June 8, El Salvador’s Constitutional Court declared two laws, a cabinet resolution, and 11 executive decrees unconstitutional and prohibited both the executive branch and the National Assembly from continuing to publish decrees that use the argument of preventing COVID-19 as reason for violating the Constitution. On June 20, Bukele sent a letter to the Assembly demanding it restore powers he said the Court had removed.  
      • On June 6, Bukele made good on his promise to veto a May 30 measure by the Legislative Assembly that sought to reopen business activities on June 8.
    • Mitigation measures: El Salvador began to implement containment measures before the first confirmed case. The legislature first approved both a state of emergency and a state of exception on March 14, though the state of exception, which raised concerns due to the suspension of constitutional rights, expired on April 12. For most of the period since those first steps were taken, there have been battles over extensions. Below is a on overview of milestones along the way:
      • With a state of emergency having expired at midnight on May 16, Bukele’s government declared a 30-day extension without the legislature’s approval on May 17, basing the decision on a 2005 constitutional measure allowing the president to decide in the case that the legislature cannot meet—though the Assembly was scheduled to do so. The Attorney General’s office filed a challenge with the Supreme Court, which, on May 18, declared the extension to be unconstitutional. Bukele then threatened—and then made good on the promise—to veto a congressional measure passed May 18 that extended the country’s quarantine for no more than 15 days and, among other things, required companies to set public health protocols for reopening. With that measure dead in the water, the Assembly spent the week of May 25 drafting the later-vetoed legislation but hit various obstacles, including Bukele’s resistance to transparency measures imposed by the Assembly.
      • On May 10, the presidency published a decree with seven modifications to the stricter quarantine measures Bukele announced May 5 and that began May 7. The updates sought to address concerns about unconstitutional measures in two prior decrees. The modifications included allowing health workers to use public transportation; letting police, the military, and medical workers make purchases and conduct bank transactions without showing identification; and the establishment of a call center to attend emergency calls and handle purchases of medications. The initial set of new rules, which the National Assembly paved the way for when it passed a quarantine law early in the morning of May 5, allowed Bukele to decree that Salavadorans can only leave their homes twice a week to buy food and medicine within the towns where people reside. On May 7, the presidency added on to the restrictions by prohibiting public transportation, taxis, and ubers, thereby severely limiting movement in a country where 80 percent of the population uses public buses for transport.
      • On April 29, Bukele vetoed a transitional law passed April 17 by the National Assembly that sought to fulfil an April 15 Supreme Court resolution safeguarding the rights of those who are detained for violating the national quarantine and subject to the punitive measures outlined in an April 14 executive order. Bukele’s executive order required people to allow health officials into their homes to evaluate sanitation measures, while those who violate the national quarantine are subject to 30 days of controlled quarantine. In addition, it required those driving without a justified reason to submit their vehicles for disinfection. Also on April 29, Bukele vetoed a law designed to aid health professionals by, among other things, providing them with life insurance. The Assembly had already sought once to bypass the president’s prior veto on this measure on April 23. 
      • On April 12, Bukele announced it would be obligatory for people to wear masks in the street and that people who drive vehicles who do not have the right to do so could be stripped of both their licenses and cars. The latter measure contradicted an April 8 Supreme Court ruling that annulled an earlier order by Bukele to seize vehicles. The Court also annulled Bukele’s April 6 detention measure, ordered in conjunction with his April 6 announcement that the country’s quarantine would be extended for a month and that the armed forces and police should “get harsher with people in the street” and detain them for 30 days for not following quarantine rules.
    • Travel and border restrictions: El Salvador’s international airport reopened for service on September 19, just over six months after it shut down. Land borders with Guatemala and El Salvador began reopening during the week of September 21, and continued with the reopening of borders in Central America in October. As of the airport’s reopening, travelers—Salvadoran or not—entering the country had to prove they took a coronavirus test within a 72-hour period prior to flying or face a $6,000 penalty, though reports exist of inconsistent handling of passengers at port of entry. The constitutional wing of the Supreme Court declared September 11 that the government cannot prevent Salvadoran nationals from entering the country based on COVID-19 test results. Even before the airport was closed in mid-March, Bukele banned foreign travel into the country, except for residents and diplomats, while returning Salvadorans were required to be isolated for 30 days.
    • School closings and restrictions: The Education Ministry announced August 19 that schools and universities will remain closed until at least December 31 and that, in the meantime, virtual education will take place via internet, radio, and television. Bukele initially ordered all schools and universities to close on March 11 for 21 days. With quarantine extensions, schools remained closed and classes transitioned to virtual sessions on May 25.
    • Other updates:
      • On May 27, the president said he plans to push for a reform that would completely overhaul the country’s governmental structure. “We have the support of 97 percent of the population,” said Bukele, who had an approval rating of 92.5 percent, per a poll published May 24 by La Prensa Gráfica. The president also said “the majority of legislators are delinquents” for failing to come to an agreement about an extension of an emergency decree related to the pandemic. He made the comments after a May 27 meeting with union leaders, who put themselves at the service of the president to pressure the Assembly, potentially through protests, but also by bringing a case against both the legislature and the Supreme Court to the Inter-American Commission on Human Rights (IACHR) over the two government branches’ blocking of Bukele’s latest emergency decree. Bukele had promised on May 20 to file the suit, but the head of the IACHR responded that the Commission cannot hear a case in which one branch of government sues another.
      • Bukele said on May 26 that he is using hydroxychloroquine, an anti-malarial drug endorsed by Trump. The president, who noted the drug is no longer part of the country’s health protocols to treat the pandemic, said he is taking it as a preventative measure. 
      • Per a May 21 ElSalvador.com report, the U.S. State Department sent a memorandum to the U.S. Congress in which it determined that El Salvador has met conditions to continue receiving aid but cautioned about Bukele’s lack of transparency, attacks on the press, and efforts to weaken institutions amid the pandemic. On May 18, the U.S. ambassador to El Salvador called on the three branches of El Salvador’s government to reduce confrontation. On June 15, a date that marks 157 years of bilateral relations, the U.S. ambassador announced $5 million in aid for El Salvador, with $3 million for food and $2 million for hygiene kits to help those affected by COVID-19 and Tropical Storm Amanda. This sum is on top of more than $73 million in aid since March 2020 to help mitigate the effects of both emergencies.
      • The wear and tear on El Salvador’s institutions has not escaped international attention. On May 19, the UN secretary general urged the Bukele government to take legal routes to combat the pandemic, and to “act in a responsible manner with respect for human rights, democratic institutions, and the rule of law.” This came after a May 16 interview with France 24, UN High Commissioner on Human Rights Michelle Bachelet raised similar concerns. 
      • On May 11, private sector leaders and academics quit a committee charged with overseeing the spending of $2 billion in pandemic-related funds after they said Bukele’s government failed to provide necessary information for them to effectively conduct an audit. 
      • On April 29, two U.S. congressmen—Chairman of the House Committee on Foreign Affairs Eliot Engel (D-NY) and Chairman of the Subcommittee on the Western Hemisphere Albio Sires (D-NJ)—wrote a letter urging Bukele not to use the pandemic as an excuse to discard constitutional and human rights in response to images of extreme measures being taken in Salvadoran prisons. El Salvador experienced a surge in violence between April 24 and April 26, with more than 50 murders taking place over the course of those three days. On April 26, Bukele said gangs were taking advantage of authorities’ focus on the pandemic and announced that police and armed forces had permission to use lethal force in cases of self-defense or defense of others. In addition, the presidency announced prisoners who are members of rival gangs would be mixed within cells and shared images of inmates packed together in human chains. Additionally, El Faro reported on April 24 that the country’s human rights body had uncovered evidence of illegal detentions and cruel treatment during the course of the country’s quarantine. 
      • In an April 21 tweet showing himself alone with a mask on and seated behind a giant desk, Bukele said rumors he had been kidnapped by extraterrestrials were unfounded. 
      • Bukele thanked Alibaba founder Jack Ma via Twitter on April 5 for a donation of 100,000 masks, more than 10,000 test kits, and five ventilators.  

    Economic impact and measures

    • GDP forecasts: Per a July 16 report by La Prensa Gráfica, ex-President of the country’s Central Reserve Bank Mauricio Choussy estimates the pandemic will result in a 9.1 percent GDP contraction for El Salvador this year, as well as 200,000 formal job losses. In June, the World Bank forecast that El Salvador would see a GDP contraction of 5.4 percent, meaning a worsening outlook from the Bank’s April forecast of a 4.3 percent contraction.
    • Fiscal stimulus and economic policy: On May 5, the National Assembly approved a $1 billion plan to stimulate economic recovery that included measures such as loans for small enterprises and financing for business owners in the informal sector. On April 14, the IMF gave El Salvador a $389 emergency assistance loan—the first from the agency to the country in over 30 years, reports Latin Finance. 
    • Social programs:
      • The government and the private sector came to a $1 billion agreement on April 23 to provide basic foodstuffs to 1.7 million families; $600 million in low-interest loans to micro-, small-, and medium-sized enterprises; $90 million in credits to the informal sector; and delays on corporate tax payments and income taxes.
      • On March 21, in conjunction with imposing quarantine, the president announced a subsidy of roughly $300 per house for about 75 percent of Salvadoran households. He also threatened against corruption related to economic relief measures, saying 60 auditors would be reviewing disbursement and that “I will make a prisoner of anyone who touches even a cent.” In addition, he has frozen the prices of basic goods and warned against price gouging.
      • On March 18, Bukele announced a plan suspending utility, phone, and internet bills for three months to be paid back over the course of the subsequent two years. The president also froze payments on items such as mortgages, cars and motorcycles, and credit cards.
    • Other updates:
    Guatemala

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    Government response

    • Reopening plan: On October 28, Giammattei warned that “the second wave has arrived” but suggested that this required responsible behavior rather than rolling back reopening measures. Since that point, the country was struck by two hurricanes—Eta and Iota—involving widespread flooding and turning the country’s attention to natural disasters.
      • The government suspended partial curfews—in place since March—starting October 1 and permitted the reopening of recreation spaces ranging from archaeological sites to national parks to gyms. Municipalities must follow a color-coded alert system announced in July that runs from red (least safe) to green (safest) that defines occupancy and circulation rates, with greater occupancy allowed in towns with lower levels of contagion. As of October 17, 122 of Guatemala’s 340 municipalities were at alert level red. The country began its process on July 26, allowing for the reopening of businesses such as shopping centers and restaurants. The president mapped out the color-coded reopening plan on July 12, which involves four alert levels, color-coded from red (least safe) to green (safest), based on the number of active cases per 100,000 residents to determine when each town could reopen. Alert levels are to be assessed every 15 days. This came after he referred to reopening on July 8 by saying, “For the municipality that behaves the best, that has less contagion, the prize will be having greater levels of reopening each day.”
    • Mitigation measures: Guatemala’s containment measures were based on a state of calamity first announced on March 6 for 30 days and extended each month since then. On August 25, despite not having a quorum, the legislature approved the president’s request for another extension of the state of calamity for 30 more days. The state of calamity allows the government to enforce a range of measures over time, from preventing price gouging to halting gatherings. Measures include:
      •  On June 14, with confirmed cases rising above 300 per day, the president limited vehicular transit based on license plate numbers. The measure focused on departments with a high number of cases on most days and nationwide restrictions on the movement of cars and people on Sundays. He announced an extension of the measure on June 28 for 15 days with slightly modified rules.
      • On May 14, the president declared a total shutdown of the country on weekends, with only trucks transporting essential goods or people with grave illnesses permitted to circulate during that time. He then suspended the weekend lockdowns on May 31, and reduced overnight curfews to run from 6 p.m. to 5 a.m. The initial curfew, which began on March 22 and ran nightly from 4 p.m. to 4 a.m., was extended on March 29 and April 12, with hours initially reduced on April 19. 
      • On May 10, with confirmed cases exceeding 1,000 for the first time, the president announced that markets would be closed in cases where social distancing is not practiced, shopping malls will be fined even for partial opening, people spreading rumors about the pandemic would be subject to punishment, hospitals that do not inform on coronavirus cases or violate protocols would face sanctions, and transit between the country’s departments would be restricted on a national level. 
      • On March 14, the Health Ministry suspended religious events, gatherings of more than 100 people, and Easter celebrations. Then, on March 17, the government prohibited events of any size, halted public transport, ended visits to institutions housing senior citizens, closed shopping malls, prohibited drinking after 5 p.m., and suspended visits to prisons. Shops had to close from 9 p.m. to 4 a.m. except in the case of pharmacies and essential basic services. 
    • Travel and border restrictions: Six months after closing them, Guatemala began to reopen its borders with Belize, El Salvador, Honduras, and Mexico starting September 18. On September 10, Giammattei issued a decree allowing for national and international flights starting September 18 as well. Travelers entering the country are required to show they had a negative coronavirus test in the 72 hours prior to traveling or face 14 days of isolated quarantine.
    • School closings and restrictions: In late September, the Education Ministry confirmed that schools will not reopen in 2020 and announced a hybrid system of in-person and distance learning will be implemented in 2021. The government first announced on March 14 that schools would close for three weeks but this time period was extended. 
    • Other updates:
      • The president sacked Health Minister Hugo Monroy on June 19 and replaced him with María Amelia Flores González, who has more than 30 years of public health experience and served in the administration of ex-President Óscar Berger. Monroy had faced criticism for a lack of transparency in his management of the health crisis. On June 16, Acción Ciudadana, a Guatemalan organization focused on transparency issues, called on country’s top prosecutor office to strip Monroy of political immunity for violating the right to access to information, given “systematic opacity” when it came to the delivery of coronavirus figures, particularly in terms of death counts. Monroy acknowledged technical errors in the counts. The new health minister began an audit of the counts on June 20, after which it launched a new COVID-19 data platform on July 18 that reflects the Ministry's ongoing efforts to review its counts.
      • Per a May 27 report, Guatemala is among five Latin American countries witnessing an accelerated increase in food prices. In early April, Guatemalans began taking to the streets with white flags, asking for money to alleviate hunger. After that, per the Guardian, a color-based flag system has come into use in which red flags represents a need for medicine while “black, yellow, or blue means that a woman, child or elderly person is in danger of violence.” 
      • The president completed his first 100 days in office on April 23. Of that time, 51 days were during this state of health calamity.

    Economic impact and measures

    Honduras

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    Government response

    Economic impact and measures

    • GDP forecasts: July figures from the Honduran Central Bank (BCH) show the Honduran economy could contract by a record 8 percent in 2020. The country’s economy contracted by 1.3 percent in the first quarter of 2020, the Honduran Central Bank (BCH) announced on May 22.
    • Fiscal stimulus and economic policy:  When it comes to international organizations, the Honduran Congress approved on July 29 a series of loans from multilateral organizations totaling more than $109 million. Prior to that, the Central American Bank for Economic Integration announced on April 21 that it approved a $200 million contingent credit line for Honduras to “strengthen the position and liquidity management capacity” of the bank. Before that, the World Bank approved a credit worth $119 million on April 10 and the IMF disbursed $143 million on March 31.
      • On the domestic front, the Honduran Congress approved a measure on July 16 that allows municipalities to use up to 45 percent of the $11.4 billion national budget to combat the pandemic.
      • Additionally, the BCH approved a package of monetary policies to free up $465.5 million, the bank announced April 7. Among the policies, the bank announced the reduction of mandatory investments in the national currency along with a reduction in the BCH credit interest rate. In an extraordinary session on April 2, the Honduran Congress approved a number of economic measures aimed at alleviating the country’s productive sector and supporting workers including the creation of a trust to guarantee loans for the agricultural sector and micro, small, and medium-sized businesses. The legislature also authorized the presidency to issue debt worth up to $2.5 billion.
    • Social programs: As of mid-June, 70 percent of furloughed workers received bonuses as part of the Temporary Solidarity Contribution program, per government figures released June 10. On June 16, the government extended a measure until August 31 that delayed income tax payments for micro, small, and medium-sized business employees, which account for 70 percent of the workforce in the country.
    • Other updates:
      • Per a July 2 report from the UN World Food Program (WFP), more than 1.6 million Hondurans are suffering from food insecurity during the COVID-19 crisis, a sharp increase from the less than one million food-insecure Honduras prior to the pandemic. The WFP will launch a humanitarian aid program in the country to help 250,000 food-insecure families for three months.
    Mexico

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    Government response

    • Reopening plan: The Mexican government announced its three-phase reopening plan to achieve a “new normal” on May 13, kicking off the first phase on May 18. That phase involved more than 300 towns dubbed “municipalities of hope” that had no confirmed coronavirus cases and were given the green light to reopen, although some governors and local authorities delayed due to a concern over lack of testing and pandemic spread. The second stage, which ran from May 18 to 31, involved preparations to reopen the country. The third stage began June 1 and involves a regular assessment within each of the country’s 32 states to determine reopening of social, educational, and economic activities based on a color-coded system running from red (more restrictive) to green (less restrictive, schools and public spaces can reopen). Although the initial announcement suggested the reopening of sectors deemed essential—including construction, auto manufacturing, and mining—this became less clear on May 14 when a government gazette suggested these sectors would be preparing to reopen during this time but would not restart until June 1. The government made a change again on May 15 when it said auto sector plants could restart operations before June 1 in cases where health and safety requirements had been met.
      • As of November 17, the Health Ministry had two states at alert level red, 18 at alert level orange, 11 at alert level yellow, and just one—Campeche, at alert level green. Chihuahua and Durango, the two states now red, fell back into this alert level, due to hospital occupancy rates rising to above 65 percent.  In states at the orange level, businesses such as hotels and restaurants can reopen while following health protocols such as enforcing limited capacity. Yellow, the second-lowest level, allows for most economic activities to return to normal with some occupancy limits.
      • On June 13, López Obrador released a decalogue outlining how to prepare for the “new normal,” with recommendations including staying informed about the state of health in the country, remaining optimistic, avoiding junk food, exercising, and seeking out a spiritual—even if not religious—path. On June 14, the president released a video saying the most difficult part of the pandemic was over, even though, on June 10, the WHO warned that Mexico is facing its “most dangerous moment." On July 12, the president again said the pandemic is on the decline in Mexico. On the same day, the country surpassed Italy to become the country with the fourth-highest coronavirus death toll worldwide.  
      • In keeping with the reactivation plan, López Obrador restarted his domestic travels on June 1. He made the first international trip of his presidency on July 7 when he headed to the United States for an official meeting with Trump to celebrate the July 1 implementation of the USMCA trade deal. Early in pandemic days, López Obrador’s lax approach to the virus drew concern from some observers, particularly in March, when the president continued to spend weekends traveling through Mexico and shared videos on social media in which he could be seen making physical contact with supporters. He subsequently changed his tone, and, on April 15, the office of the president announced that López Obrador would suspend his tours. 
    • Mitigation measures: May 31 marked the last day of Mexico’s National Period of Healthy Distancing ahead of the June 1 start of a “new normal” and staggered reactivation of the economy. However, López Obrador indicated on June 1 that a new outbreak could lead to new periods of social distancing. Below is a timeline of mitigation efforts:
      • In much of the country, November 2020 events commemorating Day of the Dead were cancelled and pantheons indicated plans to keep gates shuttered. Mexico City will also limit December 12 celebrations for the Virgin of Guadalupe. The day typically involves pilgrims coming from around the country to the capital. Instead, the Basilica de Guadalupe, where the Virgin’s image is housed, plans to hold virtual events.
      • On May 3, López-Gatell clarified that Mexico was no longer following the Sentinel Surveillance technique, which focuses on monitoring over widespread testing, given that the country entered Phase 3 on April 21. Instead, Mexico has shifted to a method based on hospital occupancy and available beds.
      • The government announced on April 21 that the country had entered Phase 3, when there would be a rapid increase in cases and hospitalizations. López-Gatell indicated that social distancing measures implemented in Phase 2 would continue and he urged all companies engaged in non-essential work that had not yet shut down to do so.
      • On the evening of March 30, Foreign Minister Marcelo Ebrard declared a national health emergency. This came as López-Gatell announced suspension of all non-essential activities, no gatherings of more than 50 people in the case of essential sectors, and self-quarantine for people over 60 and at-risk health populations. Ebrard clarified that the emergency measure is not a state of exception involving armed authorities and that companies that avoided paying workers or defied rules could face sanctions. On the morning of March 31, López-Gatell shared a list of essential services, which range from tax collection to elderly care centers to supermarkets. 
      • On March 24, the government declared that the country had entered phase 2 of the epidemic after the WHO categorized it among countries with community transmission. The government suspended public and private gatherings of 100 people or more. In addition, the Finance Ministry said it would provide roughly $180 million to the Defense Ministry and Navy for measures such as expanding hospitalization capacity, coordinating with states and municipalities, and deploying thousands of health professionals. On the following day, López-Gatell said the federal government would stop all non-essential operations.
      • On March 20, the Health Ministry revealed a new character, Susana Distancia, to illustrate how far apart people should stay from each other. Her name is a play on words: su sana distancia, or “your healthy distance.” 
    • Travel and border restrictions: The U.S. and Mexican governments announced October 16 that they would be extending border restrictions—first announced March 20 and extended monthly for North America since—until November 21. The restrictions apply to non-essential crossings but not commerce. U.S. Ambassador to Mexico Christopher Landau tweeted on September 8 that the State Department lowered its coronavirus-related travel warning for Mexico from Level 4 (don’t travel) to Level 3 (reconsider travel). Mexico is the top international destination for U.S. travelers.
      • Mexico’s immigration agency reported on April 26 that it had nearly emptied its detention centers and that the total number of migrants still being held had been reduced to just over 100 after deporting 3,653 people to Guatemala, El Salvador, and Honduras.  
    • School closings and restrictions: Education Minister Esteban Moctezuma suggested on September 22 that two of the country’s 32 states, Campeche and Chiapas, would be the most likely to shift to alert level green first, meaning schools could open in these states as early as two weeks later at a reduced capacity. Then on October 2, he said that schools would not open in a rushed manner. The minister had announced on August 3 that schools would not reopen for the August 24 start of the academic year and would remain closed until alert level green is reached. Instead, students are to be taught through a televised study program broadcast by major Mexican television networks. The government said that 94 percent of Mexican families have televisions, and that students without access to television or internet will access the programming via radio. The country’s social security system announced the reopening of daycare centers starting July 9, with those in “red zones” at 25 percent capacity and only serving the children of essential workers.  
    • Other updates:

    Economic impact and measures

     
    Nicaragua

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    Government response

    • Reopening plan: The country has not gone into lockdown and so does not have a reopening strategy. 
    • Mitigation measures: After being absent for over two weeks as hurricane Eta approached Nicaragua’s Caribbean coast, Ortega made a public appearance on November 8, stating there were no storm-related deaths, while taking the opportunity to note that the country has the lowest coronavirus mortality rate. Earlier this year, Ortega set a new record for being absent after going missing from the public eye for 38 days between June and July. The president re-emerged in the public eye on July 20 at an event commemorating the 41st anniversary of the Nicaraguan revolution. Ortega, wearing a face mask for the first time during the pandemic, praised his administration’s efforts during the crisis but did not announce any mitigation measures. The president previously went missing for 34 days between March and April, after which he delivered a televised address saying that Nicaragua hadn’t “stopped working, because if this country stops working, it dies.” Ortega’s administration has not instituted extensive mitigation measures and has even promoted large events. As a result, civil organizations in the country and health organizations across the region have taken the following steps:
      • The Pan American Health Organization (PAHO) has repeatedly called on the Nicaraguan government to provide them with precise and transparent information regarding contagion within the country. Moreover, PAHO requested the Ortega administration that it allow a group of representatives from the organization into Nicaragua to strengthen the country’s monitoring strategy and mitigation response, according to a July 20 report by the Nicaraguan newspaper Confidencial. The government has not approved their request.
      • In a June 10 statement, leaders from Nicaragua’s private sector called on the government to institute 14 health, economic, and social measures to mitigate the effects of the pandemic in the country. 
      • Before that, in a June 1 letter, over 30 medical associations in Nicaragua warned that the “exponential increase” in COVID-19 cases in the country has already led to the collapse of both the public and private healthcare systems. The group urged Nicaraguans to come together in a voluntary national four-week quarantine to slow contagion.
      • Since then, Nicaragua’s private sector and the Pan-American Health Organization both joined the call for a voluntary quarantine and stricter health measures in mid-June. A month earlier, in a televised May 1 message, Ortega denounced stay-at-home and social distancing orders as “extreme” and “radical” measures that would “destroy the country.” 
      • Some of the minimal mitigation steps that the government has taken include cleaning and disinfecting some street markets and public transportation units in mid-April. Moreover, per a May 6 report by Confidencial, the government began rotating public employees, asking some to work from home and sending others on vacation to avoid contagion. Murillo stated in mid-April that health authorities had been visiting households across the country to verify their sanitation measures and give each family information about preventive measures. Before authorities confirmed the country’s first case, Ortega’s administration announced in early March that it would ban wakes and funerals for those who die of the virus.
    • Travel and border restrictions: After they suspended their services in May, most of the airlines that operate in the country announced on July 24 that they would not resume flights in and out of Nicaragua until at least September.
    • School closings and restrictions: The Education Ministry called on public schools to open on July 21 to start the second semester of the school year. The ministry previously ordered schools to open on April 20 to finish the first semester, though attendance remained low. Schools were initially closed for two weeks in mid-April. Starting in May, a number of universities began offering some courses virtually while others have taken steps to cut the number of students and faculty present on campus any given day by assigning them days of the week. 
    • Other updates:
      • In response to protests by Central American cargo truckers in Costa Rica’s Peñas Blancas near the Nicaraguan border, the Costa Rican government reduced restrictions on October 9 by eliminating the requirement that trucks use GPS tracking and extending truckers' ability to stay in Costa Rica during their trips from five to 10 days.
      • An Inter-American Dialogue poll conducted between July 1 and 9 found that 60 percent of Nicaraguans qualify Ortega’s management of the pandemic as “terrible,” with 50 percent of Nicaraguans considering COVID-19 to be the most urgent problem the country faces.
      • According to a June 16 report by Confidencial, the government has concealed hundreds of coronavirus-related deaths in the first weeks of June. Similarly, a May 12 report by the Associated Press found that Nicaragua’s government was actively trying to conceal the number of coronavirus-related deaths in the country by burying patients with symptoms similar to COVID-19 quickly after they die––at times within hours of their deaths and without notifying family members. 
      • Though Nicaragua and Costa Rica reached an agreement on May 30 to reopen their shared border and allow the passage of foreign cargo, Nicaragua did not reopen its borders until May 31. The new agreement outlines that truckers may transit into Costa Rica but will only be allowed five days within the country’s borders. Ortega had ordered on May 18 the suspension of merchandise transited into Nicaragua from Costa Rica in response to that country’s decision to partially close down its borders to foreign cargo earlier that day, leaving 1,000 Nicaraguan truckers stranded. Costa Rica began testing Nicaraguan truckers entering its country on May 8 and said 61 had tested positive when it announced its border closure. 

    Economic impact and measures

    • GDP projections: June projections from the World Bank show that Nicaragua’s economy will contract by 6.3 percent this year, down from the Bank’s April prediction of a 4.3 contraction. In a May report, The Economist Intelligence Unit forecast that Nicaragua’s economy will contract by as much as 6.5 percent, after previously forecasting a 1.5 percent contraction in a January report.
    • Fiscal stimulus and economic policy: The Inter-American Development Bank announced on August 1 that it approved a loan for Nicaragua totaling $43 million, one that will be strictly supervised by multilateral organizations like the Pan-American Health Organization. The Central Bank of Nicaragua instituted four monetary measures on June 22, including reducing the country’s reference rate, and injected $116 million into the country’s economy. As of May 10, Nicaragua’s government had received at least $15.3 million in economic aid to mitigate the pandemic’s effects from the Central American Bank for Economic Integration, Taiwan’s government, and the Pan American Health Organization. However, the government has not announced any economic measures in relation to these funds. 
    • Social programs: None have been announced during the pandemic.
    • Other updates:
      • Per July 7 by Confidencial, the Nicaraguan government has received over 30,000 coronavirus tests in donations from the Pan-American Health Organization, Central American Bank for Economic Integration, and Russia. The fate of these tests remains unknown as the government does not report the total number of tests it has administered.
    Panama

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    Government response

    • Reopening plan: President Laurentino Cortizo first announced the six-stage reopening process on May 11, and phase one began on May 13 with the resumption of technical services. Panama entered the second phase of its reopening process on June 1, under which the country has a nightly curfew between 7 p.m. and 5 a.m. As part of the second stage, infrastructure projects and non-metallic mining restarted while sites of social activity, including churches and sports facilities, reopened at 25 percent capacity. The use of face masks is mandatory. The Health Ministry announced on June 24 that the next four reopening phases would vary by province and be determined based on contagion rate and size of population in each area. Though the curfew remains in place nationwide, the government has lifted total quarantines on Sundays, starting October 25. See below for further reopening measures:
      • Following a surge in cases since the end of October, workers unions have written to Health Minister Ramón Martínez voicing their opposition to the possibility of new restrictions, though the Health Ministry has made no such declarations as of November 18.
      • The government announced August 25 a new plan to continue the country’s reopening process. Come September 7, all construction-related activities and industries will reopen. Then, by September 28, restaurants, beaches, retail stores, and national tourism will resume. The plan’s last phase will come October 12 when international tourism will resume and the national curfew will be lifted. 
      • As of October 24, beaches and rivers are open to recreational activities, though groups are limited to 7 people.
      • On August 17, aspects of the third and fourth reopening phases went into effect nationally. On said date, wholesale reopened with home delivery and limited contact pickup options, whereas retail will reopen with capacity restrictions. Beauty salons, car dealers, NGOs, and private construction operations also resumed. Prior to being instituted on a national scale, most of these measures went into effect on July 27 in three provinces with low contagion rates. Restrictions were further lifted nationally on August 24, per an August 18 announcement by the government, including those on non-contact sports.
      • Minera Panamá—originally scheduled to reopen under phase six of the country’s reopening plan—has been given the green light to reopen, the government announced July 7. The copper mine has had to suspend over 4,000 worker contracts since the government ordered it to close in early April. Before closing down, around 200 workers tested positive for COVID-19 and five died.
      • On May 10, Panama’s Health Ministry published a number of health and safety guidelines that both the public and private sectors had to meet before reopening began.
    • Mitigation measures: As part of the government’s new reopening plan (see above), Panama implemented new mitigation measures as of September 14, when a curfew went into effect across most of the country. Panama’s movement restrictions based on gender were also lifted nationally on September 14. Previous measures included:
      • Starting July 24, five out of the country's 10 provinces were placed under a stricter quarantine. These provinces have varying curfews, and some have a total weekend curfew.These provinces were the last regions to hold on to gender restrictions, though those were finally lifted in mid-September. Panama was the first country in the region to institute restrictions based on gender.
      • Between April and May, Panama went through at least five weekends of complete quarantine that were mandated by Cortizo. 
      • Panama’s national quarantine began on March 25 without a specified end date. Before that, on March 12, Cortizo announced a state of emergency, which granted the government 180 days starting on March 13 to mobilize up to $50 million to mitigate the effects of the pandemic.  
    • Travel and border restrictions: Panama’s airports opened to international travel on October 12, requiring passengers to sign an affidavit before boarding flights and then taking a $30 COVID-19 test upon arrival within 48 hours. A government announcement on August 21 suspended all incoming international flights until at least September 21. Hotels also opened October 12. However, starting August 17, Panamanian nationals and permanent residents were allowed back into the country. The government initially decreed the suspension on March 22 and extended it five times. Before the total suspension, the government monitored incoming flights from China, Italy, Iran and South Korea in early March. Capacity in ground transportation vehicles remains limited to 50 percent.
    • School closings and restrictions: Public and private schools resumed remote classes on July 20 via a virtual platform launched on June 22. According to Education Ministry figures released August 10, three in ten Panamanian students don’t have access to remote classes. The government initially decreed a national temporary suspension of classes in both public and private institutions from March 11 to March 20, after which the Education Ministry extended the suspension multiple times. While students continue learning remotely, school staff and administration were allowed to enter buildings starting October 12.
    • Other updates:
      • Via a July 31 statement, the Inter-American Court of Human Rights ordered Panama to protect the health and life of the hundreds of migrants stuck in the country due to the pandemic, particularly those in the Darién region, by providing adequate COVID-19 tests and treatment. Per a mid-May La Estrella de Panamá report, 2,532 migrants of different nationalities were stuck in Panama due to border closures across the region, impeding them from continuing their journey north.

    Economic impact and measures

    • GDP forecasts: The IMF’s economic outlook for the country, updated in October, projects a 9 percent GDP contraction in 2020. The fund’s Western Hemisphere director, Alejandro Werner, notes that the country has one of the best debt standings in the region and is set to recuperate in 2021 with 4 percent growth.
    • Fiscal stimulus and economic policy: On May 27, the government extended until July 17 its grace period to pay the income tax that was due on March 31. The extension first went into effect on March 20. The government announced on May 26 that it had restructured its budget by $2 billion to free up funds for the government’s response to the pandemic. In the international front, Panama has relied on the following economic policies:
      • On the international front, Cortizo announced on April 13 that the Panamanian government had secured $1.3 billion in credit lines from multilateral organizations. Panama received $500 million from the IMF and an equal amount from the World Bank to invest in employment, health, and security, and the final $300 million from the Inter-American Development Bank for medium and small companies and the agricultural sector. 
      • On March 26, the Panamanian government sold $2.5 billion in sovereign bonds in the cross-border market in order to divert funds from the country’s budget to combat the pandemic. Panama was the first country in the region to issue sovereign bonds amid the pandemic.
    • Social programs: On June 30, Cortizo signed a measure instituting a moratorium on a number of payments—including mortgages, a variety of loans, and credit cards—until December 31, 2020. The president had previously reached an agreement with the Panama Banking Association on May 4 to put in place such a moratorium, when Cortizo also signed a measure to suspend payments on public services—including electricity, internet, and phone bills—for the next four months. The utilities moratorium expired on July 1, though clients that are still unable to pay for services can continue appealing for relief.
      • Before that, Cortizo launched Panama Solidario on March 27, an initiative to collect and distribute funds and resources to Panama’s poorest communities. After protesters across Panama complained they had not received any aid from the program as of mid-April, the president announced April 29 that the digital platform for Panama Solidario would be available starting April 30, through which funds began to be disbursed in May.
      • A March 20 executive order mandates that companies suspend worker contracts if a business has to temporarily close, meaning that employees will not be paid but won’t necessarily be fired. Figures from Panama’s Ministry of Labor and Workforce Development show that, as of April 15, nearly 50,000 Panamanians saw their employment contracts suspended in one month. 
    • Other updates:
      • Due to reduced personnel, the Panama Canal has seen a traffic clog that has delayed the passage of cargo ships some 10–15 days according to October reports.
      • In May, crossings through the Panama Canal––which is used by 6 percent of global trade––dropped by 21 percent due to decreases in international trade, according to figures from the Panama Canal Authority (APC). The ACP announced on March 25 that ships attempting to cross through the Canal had to meet a number of safety requirements, including that all aboard each ship be healthy.
      • Moody’s projected in mid-April that Panama’s public debt will expand to 53 percent of the country’s GDP with the deficit growing 2.2 percent.  
    Paraguay

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    Government response

    • Reopening plan: Starting November 16, the government implemented new health guidelines for the reopening of the country (with the exception of the city of Caacupé) to last through at least December 6. New allowed measures include: sporting activities of up to 14 people, cultural activities of up to 75 masked people, and social distancing. A national curfew from midnight to 5 am remains in place. In Caacupé, where cases are higher, slightly stricter measures will remain in effect.
    • Mitigation measures:
    • Travel and border restrictions: On October 15, the government reopened the three main land border crossings with Brazil. Arrivees must provide negative results from a PCR test taken 72 hours before traveling and must quarantine for two weeks upon arrival. Foreign Minister Federico González announced on October 9 that, beginning October 21, the Asunción airport will reopen for international flights, and that visitors staying less than one week in the country can forgo the quarantine requirement if they present a negative test. On September 7, the government approved a controlled air traffic protocol announced at the end of August for “bubble” flights to operate between Paraguay and Uruguay. Residents of both countries must present a negative PCR test taken a maximum of 72 hours prior to flying. 
    • School closings and restrictions: On April 27, Abdo Benítez announced the suspension of school classes until December. School closures were first announced on March 10.
    • Other updates: 
      • Paraguay’s Superior Court for Electoral Justice announced on July 27 that the country’s municipal elections are postponed until October 10, 2021 as a result of the pandemic. Prior to that, on June 6, President Mario Abdo Benítez signed a law mandating that the Court update the electoral calendar to reschedule municipal elections, which would have taken place in November 2020, to 2021. Abdo Benítez’s order also mandated that party candidates be chosen between 90 and 120 days prior to the new voting date and incumbents shall hold office until new leaders take office.  

    Economic impact and measures

    • GDP forecasts: Paraguay’s GDP is projected to contract just 2.3 percent in 2020, per an October 6 ECLAC report. In late July, Paraguay’s Central Bank projected the country’s economy will shrink by 3.5 percent in 2020.
    • Fiscal stimulus and economic policy:
    • Social programs:
      • Due to Alto Paraná’s increase in cases becoming the country’s hotspot in early August, the government announced it would begin issuing money transfers worth roughly $72 to over 28,000 low-income inhabitants across the department’s 22 districts to provide economic relief. The Finance Ministry revealed on June 17 that the government has distributed $1.2 million to different programs under the March 16 health emergency to fight the pandemic, with $243 million of that sum going into health, education, and security services in April and May. 
      • On July 14, the Social Welfare Institute head announced that starting July 17 those who lost their jobs during the pandemic may collect a third wave of subsidy payments as part of the $100 million social welfare emergency program announced on March 26.  In an expansion to the original decree, this measure now includes workers who earn more double the minimum salary. On May 13, the Development Ministry announced it would distribute an additional $4.8 million in the form of direct debit deposits to roughly 165,229 Paraguayans via the Tekoporã social welfare program, after on March 25, the government announced the Ñangareko program, involving money transfers for food and hygiene products to roughly 33,000 families whose income has been affected by quarantine.
    • Other updates:
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    Puerto Rico

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    Economic impact and measures

    • GDP forecasts: The FOMBPR warned on May 26 that the island is likely to experience a deficit in the coming years as its surplus may plunge by up to 65 percent between 2020 and 2032, leaving the government unable to meet its debt obligations as the island attempts to restructure a debt exceeding $70 billion.
    • Fiscal stimulus and economic policy: Vázquez signed into law on June 14 a second package of economic measures to mitigate pandemic-related economic fallout. The new law automatically extends commercial licenses and permits by six months and eliminates for three months the 4 percent tax on professional services. The governor announced the island’s first economic package on March 23, worth $787 million. That one, which at the time of its announcement was the largest one presented by U.S. states and territories, included a 90-day moratorium on a number of payments and an incentive of $1,500 to businesses with 50 employees or fewer that had to close and don’t qualify for federal aid. The FOMBPR approved a revised fiscal plan for the island on May 27 that temporarily suspends all cuts to the government’s budget. 
    • Social programs: The U.S. territory received $2.2 billion on April 22 as part of the CARES Act, the $2 trillion federal economic relief package.
      • Puerto Ricans are eligible to receive the federal economic incentive of $1,200 available to most U.S. citizens under the CARES Act. In the case of Puerto Rico, the local Treasury Department could not disburse funds from the federal stimulus until the U.S. Treasury approved the island’s plan for distribution on May 1.
      • Vázquez unveiled her administration’s plan for the federal funds during a press conference on May 14, outlining dozens of programs focused around three pillars: strengthening the government’s response to the pandemic, reviving and protecting the island’s economy, and maintaining “continuity in government operations.” On April 13, Vázquez signed a resolution to place a moratorium on personal loans, car loans, mortgages, and credit cards until the end of June. The new measure, which is voluntary and up to each individual to use, also bars interest fees and other penalties in relation to these payments.
    • Other updates:

     

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    Government response

    • Reopening plan: On June 26, the government approved a protocol to reopen certain businesses starting June 29, such as hotels—where guests will have their temperature taken upon arrival, restaurants, bars, and cafés. This reopening will only occur under strict health guidelines, such as social distancing, mandatory use of face masks, and hand sanitizer. On June 4, the government announced a plan to reopen shopping malls starting June 9, except for those in the city of Rivera on the Brazilian border, with businesses and shoppers required to wear facemasks and follow social distancing and hygiene protocols.
    • Mitigation measures:
      • On November 13, the Labor Ministry launched a campaign to reinforce health protocols among the country’s businesses, and deployed one hundred inspectors to ensure they comply with existing guidelines to avoid outbreaks in COVID-19 cases. The inspections focus on businesses including supermarkets, restaurants, offices, and shopping centers. President Luis Lacalle Pou announced in a July 21 press conference that while he would not roll back some opening measures that already are in effect, he was implementing stricter health guidelines to slow contagion, including banning private house parties and putting more buses in circulation in the capital to lessen crowding. Uruguay has been credited with acting swiftly to mitigate the outbreak, with the president announcing a health emergency on March 13 when the first cases were confirmed. While never establishing mandatory quarantine, the country enforced a high testing rate, which contributed to the slow rise in cases; by May 5, the government reached its objective of carrying out over 1,000 daily tests. On October 19, the country’s testing rate was 81.73 per 1,000 people, the third highest in Latin America. On May 10, the Montevideo government also made the use of face masks on public transport mandatory. On March 17, the government announced the closing of stores and shopping malls.
    • Travel and border restrictions: On November 4 the government announced stricter protocols for incoming international travelers, including a mandatory seven-day isolation period monitored by public health workers. As of July 16, nationals and foreigners entering the country must submit to a temperature test upon arrival, as well as present a negative result from a PCR test taken within 72 hours of traveling. On September 22, the government announced it will require arriving travelers to take another test if they’re staying in the country for more than four days. On August 18, the Tourism Ministry announced that Uruguay will reopen borders to incoming travelers from the European Union, as a “gesture of reciprocity” after Europe announced in June that out of all Latin American nationalities, only Uruguayans are allowed to enter via air travel. European travelers must still adhere to travel guidelines previously announced in July.  They then must self-isolate for one week at home, wear a face mask when around others, and take a second test one week after entering the country. Previously, travelers could take their pre-travel test up to 72 hours before arriving. On March 25 the government announced the total closing of land, sea, and air borders.
      • On September 1, Uruguay and Brazil signed an agreement to continue mitigating contagion in border territories, this time with a focus on the cities of Artigas (Quaraí on Brazil side) and Bella Unión (Barra do Quaraí on Brazil side). The agreement involves PCR testing on both sides, mandatory use of face masks and social distancing, and capping the number of people allowed into commercial establishments. On May 25, Lacalle Pou announced measures agreed to with his Brazilian counterpart in the border city of Rivera. Uruguay’s Ministries of the Interior and Defense announced it would establish four check-points to reduce movement of vehicles and people across the border, and conduct 1,100 random tests. On May 13, the Minister of National Defense Javier García announced that the Armed Forces established 800 checkpoints and completed 2,300 patrols along the country’s border with Brazil in two months. The government first announced on May 5 it would increase health checks on the Brazilian border, after expressing concern over contagion levels in that country and recognizing that commercial activity in peripheral cities allows for daytime border crossings, despite the government having closed land borders with Brazil on March 22. 
    • School closings and restrictions: Beginning October 13, students resumed in-person classes again. Students who live with at-risk people in their homes have the option to attend in-person or via distance learning. On October 1, the government started to reopen food halls in 286 public and private schools, a measure that will guarantee meals for 210,000 children nationwide. Per The Conversation’s grading of four countries that have reopened schools amid the pandemic, Uruguay beat Israel, Japan, and Sweden, receiving As for slow and phased reopening, masks and distancing in schools, and masks and distancing in communities. On June 29, the government began phase three of school reopenings, announcing that over 200,000 more students returned to in-person classes across the country. This phase covers 230 schools, including 33 in the Brazilian border city of Rivera. On June 15 the government began phase two with the resumption of in-person classes for 420,000 students returning to classes in 156 technical schools, 200 high schools, and over 1,000 public schools, after a three-month suspension.
    • Other updates:
      • On October 13, the government announced plans to invest $2.5 million in the WHO’s COVAXX Facility in order to acquire 1.5 million doses of the COVID-19 vaccine when it becomes available. (The population of Uruguay is about 3.5 million.)
      • On May 15, the Health Ministry signed a first-time cooperation agreement with two state health service providers, the Medical Providers Federation of the Interior and the State Health Services Administration, to reinforce care for the elderly, regardless of what health insurance they may have. Over one month earlier on April 17, Lacalle Pou announced the formation of a commission of experts led by the Director of the Planning and Budget Office Isaac Alfie to advise the government on a gradual exit strategy to the health emergency.
      • In a move to address domestic dangers early on, on March 28, the government announced on March 28 measures to stop the rise of gender violence during social distancing, including an awareness campaign on social and mainstream media, a hotline for emergencies, and a protocol created alongside the Health Ministry for personnel to detect possible instances of domestic violence.

    Economic impact and measures

    • GDP forecasts: An October 6 ECLAC report projected Uruguay’s GDP will contract 5.0 percent in 2020, the third-smallest amount in Latin America. A June World Bank report projected Uruguay’s GDP to contract 3.7 percent in 2020, one whole point higher than the A World Bank semiannual April report projects projecting Uruguay’s GDP to contract 2.7 percent in 2020 this year, receding from a 0.2 percent expansion in 2019.
    • Fiscal stimulus and economic policy: The government announced a $7.7 million in subsidies on November 12 to help both public and private transportation businesses get back up to speed and comply with new health protocols, given that most are operating at passenger capacities of about 50–70 percent of pre-pandemic levels. On April 29, the government announced an investment stimulus plan that includes new tax exemptions for large-scale investments. On March 24, the government announced it would disburse funds to 55,000 workers over 65 years old in both the public and private sectors as a way to make sure they stay at home. As one of the first economic measures taken by the government, on March 19 the Central Bank announced it would provide credit lines to companies of around $50 million, while working with multilateral organizations to augment this sum to up to $125 million.
    • Social programs:
      • The number of Uruguayans receiving unemployment benefits decreased from 95,000 in September to 85,000 people in October, the government reported on November 11. On August 27, the Labor and Social Security Ministry created an unemployment subsidy for 90 days to complement existing benefit claims for workers filed from June 1 to July 31, given the magnitude of unemployment claims in those two months. On August 11, the government announced it will offer health care coverage for three months to an estimated 147,000 workers who stand to lose theirs between August 1 to October 31. On July 31, the government extended until August 31 a measure that protects the oldest working demographic. The measure includes a subsidy for workers over 65 years old worth 70 percent of their monthly salary with a cap of roughly $1,040, allowing them to stay in isolation for 30 more days. This is the third extension to the measure which was first announced in March. As an incentive for businesses to reintegrate employees, the Social Welfare Bank of Uruguay will contribute $114 monthly to employers from July 1 to September 30 for every employee reincorporated or hired. Also, the Central Bank and the National Internal Audit agency will flexibilize credit loan payments for those who cannot pay, and the Mortgage Bank of Uruguay will delay debt payment deadlines.
      • On April 1, the Senate approved the COVID-19 Solidarity Fund, made up of loans from domestic and international financial institutions, to cover government disbursements during the health emergency. On March 26, the government also declared the creation of a Coronavirus Fund, drawn from the salaries of public workers who make over $1,800 monthly, and Lacalle Pou along with ministers and legislators will also give 20 percent from their own salaries. The contributions will be periodic for two months, and the measure is subject to extension. On March 19, the government announced the Social Development Ministry would receive $22 million to reinforce social programs, such as building refuge centers and extending salaries on the Social Uruguay Card, a government-funded resource for the most disadvantaged to access food and basic need products.
    • Other updates: On April 16, the Central Bank announced monetary policy adjustments, including extensions to credit maturities, temporary reductions to bank reserves to stimulate credit lines, and temporary relaxation of stock market regulations. 
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    Editor's note

    *Editor's note: This article previously stated that an April 14 Brazilian measure involved relaxing labor provisions for employees between the ages of 29 and 55 years old. However, the measure applied to employees between 18 and 29 and over 55.

    Ernesto Aguilar, Daniela Cobos, Lee Evans, Pía Fuentealba, Diogo Ide, Luisa Leme, Maria de Lourdes Despradel, Ragnhild Melzi, and Adán Toledo have contributed to this content.

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