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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 , Chase Harrison , Katie Hopkins , Luisa Horwitz , Paola Nagovitch , Holly K. Sonneland and Carin Zissis

    One year in, AS/COA Online’s tracker offers an in-depth look at governments’ responses to the pandemic from reopenings to curfews to vaccine rollouts.

    It’s been a year since the coronavirus landed in Latin America, with the first case confirmed in São Paulo on February 26, 2020. Within a month of that date, countries across the region shuttered schools and airports, closed down businesses, and implemented a range of restrictions in an attempt to control the pandemic. Tragically, few were successful, and the region’s COVID-19 death total exceeded 600,000 by the end of January 2021.

    On top of this terrible tally is a deep social and economic cost. Latin America and the Caribbean experienced, per IMF projections, a 7.4 percent contraction in 2020. Even as vaccines appear to offer a light at the end of the tunnel, 2021 began with outbreaks and fears of new variants, threatening hopes for a swift recovery.

    AS/COA Online began tracking the spread of the disease and mitigation measures in the early days of the pandemic. Below, find a country-by-country look at how governments responded in the first year of COVID-19

    This article was originally published on March 5, 2020 and has been updated with new information.

     
    Argentina

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    Government response

    • Vaccine plan: On December 10, 2020, President Alberto Fernández unveiled a national vaccination plan, which aims to administer 60 million doses across the country in the first six months of 2021. Among groups who will receive immunization first are the elderly, health care workers, and military personnel. Below, see with which vaccine producers the country has made agreements.
      • On January 21, 2021, President Fernández, 61, received his first dose of the Russian Sputnik V shot, a day after the country’s regulator ANMAT approved it for those over 60 years of age. Despite initial concern over the Russian vaccine’s efficacy due to delayed results before an end to trials, a February 2, 2021 study released in a scientific journal confirmed that Sputnik V has a 91.6 percent efficacy rate. On January 28, 2021 Argentina received a third shipment of Sputnik V, adding up to 820,000 doses to date of a total of around 10 million. 
      • On December 30, 2020, Argentina authorized the use of the AstraZeneca-Oxford vaccine, becoming the first country in Latin America to do so. Earlier, the national health regulator authorized the use of Pfizer-BioNTech’s vaccine, despite not having a purchasing deal. In early November 2020, 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 was looking to purchase an additional 750,000 doses of the U.S. Pfizer vaccine in December. 
      • On August 13, 2020, Fernández announced that the Argentine laboratory mAbxience signed an agreement with AstraZeneca and Oxford University to produce their vaccine. 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.
    • Reopening plan: The government extended a measure for the ninth time in which the entire country would remain in the social distancing phase from February 1 through February 28, 2021, which is subject to extension. However, they urged provincial authorities to assess contagion rates in their provinces (see the January 8 update under mitigation measures.) In this more relaxed—yet cautious—phase, people may move without permission passes, host outdoor gatherings of up to 100 people and indoor ones of up to 20, indoor sporting activities of up to 10 people, and dine at restaurants at 30 percent capacity. The use of face masks continues to be mandatory, as well as keeping a six feet distance wherever possible. 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 had to follow 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:
      • On January 18, scientists announced the first nationally-developed rapid test—approved by ANMAT. It detects infection through a drop of blood.
      • On January 12, Argentina announced trials for a hyperimmune serum from horse antibodies to fight COVID-19—which began in July 2020—were successful and distribution of the treatment in hospitals and other medical centers would begin a few days later. Producer Inmunova said that current production capacity is between 12,000 to 15,000 monthly treatments (as the number of vials a person receives depends on their weight) but they expect to produce about 1,000,000 monthly treatments by March.
      • On January 8, the government announced that governors must assess the epidemiological situation in their provinces and impose restrictions to movement and public activities accordingly. The government defined a province as having a high contagion rate if the number of confirmed cumulative cases from the past 14 days per 100,000 people is higher than 150. In the city of Buenos Aires, shops and restaurants were closed from 1 to 6 pm.
      • Fernández decreed a national health emergency on March 12, to be in effect for one year.  
    • Travel and border restrictions: On February 1, 2021, the government extended a December measure through February 28 to shut air, land, and sea borders to all foreign nationals. Since December 15, 2020, all incoming travelers must submit a valid negative PCR test completed up to 72 hours before travel. Domestic commercial flights and land travel were resumed as of October 15.
    • School closings and restrictions: According to a Ministry of Education’s plan released on November 29, 2020, the country’s 23 provinces and the City of Buenos Aires are slated to begin a gradual process of sending children back to in-person schooling by March 1, 2021. In-person classes at all school levels were suspended on March 15.
    • Other updates:
      • Argentina’s Chamber of Deputies resumed in-person sessions in December after seven months of virtual meetings. Deputies who are at risk are exempt. The Senate, meanwhile, will continue virtual sessions through at least March 1.

    Economic impact and measures

    • GDP forecasts: On December 4, 2020, the Central Bank forecasted a 10.9 percent contraction in GDP in 2020, slightly improved from the 11.6-point drop projected the month before. A December Economic Commission for Latin America and the Caribbean (ECLAC) report projected GDP will contract 10.5 percent in 2020. The total GDP contraction for the first half of the year was 12.6 percent.
    • Fiscal stimulus and economic policy: 
      • On February 1, 2021, the government extended a measure freezing prices for basic goods across the country through March 31 in an effort to control price gouging. The measure has been renewed multiple times since its first announcement in April 2020.
      • On January 23, 2021, 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 December 2021. 
      • On December 15, 2020, Argentina’s Senate approved a bill that aims to raise roughly $3.6 billion for COVID-19 relief through a one-time 2 percent wealth tax on fortunes of $2.45 million and above.
      • 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.”
    • Social programs:
      • On January 31, 2021, the government extended a measure for the third time to suspend housing evictions and freeze rent hikes and mortgage rates, through March 31.
      • On October 13, 2020, the Central Bank issued roughly $39 million in loans to small- and medium-sized tourism-related businesses.
      • In September, the government extended a June measure involving a series of non-deductible monthly bonuses for medical workers of up to $590 through the end of 2020, with amounts variable depending on length of service and specialty.
      • 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. This adds to the May 5 expansion to the Program that allowed 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 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, 2020, 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 which was accepted by nearly all of the country’s creditors in August 2020.
      • On May 19, 2020, 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 lasted through 2020.
      • On May 5, 2020, 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

    • Vaccine plan: On January 17, the country began vaccinating citizens in São Paulo with China’s Sinovac vaccine, and starting January 18 the state began vaccinating healthcare workers. Health Minister Eduardo Pazuello announced on the same day that distribution to states would begin January 20. The government released its national vaccination four-phase plan on December 12, 2020, which aims to inoculate 24 percent of the population by June 2021. On November 26, Bolsonaro said he will not take the vaccine.
      • Despite Brazil being one of the hardest hit countries by the pandemic, its national regulator Anvisa only approved emergency use on January 17 for any vaccine, such as those from AstraZeneca and Sinovac. On February 6, 2021, the city of Rio de Janeiro received the first shipment of active ingredients from China to produce AstraZeneca-Oxford’s vaccine at home, an important move to speed up the country’s delayed vaccination schedule. This should help Rio’s Fiocruz center finish the 2.8 million doses it planned to manufacture and distribute.
      • On December 3, 2020, the Senate approved the purchase of 100 million doses of the AstraZeneca-Oxford vaccine, which are set to arrive in the first half of 2021.
      • On January 22, 2021, Anvisa approved a second request for emergency use of Chinese firm Sinovac’s shot produced locally, different to the first approval for the shot produced entirely in China.
      • Governor João Doria announced that São Paulo began building a facility to produce 100 million doses of the Chinese vaccine. The state has an agreement to receive 6 million doses by the end of 2021. On January 12, São Paulo’s Butantan Institute released corrected efficacy data for the Chinese Sinovac vaccine CoronaVac, which stands at 50.4 percent when considering all participants, after previously reporting a 78 percent efficacy rate which only pertained to mild and severe cases.
      • On January 5, 2020, Brazil’s Health and Foreign Ministries announced that the Rio de Janeiro health center Fiocruz was in talks with India’s Serum Institute to receive shipments of AstraZeneca-Oxford’s vaccine. 
      • In December 2020, Russia requested regulatory approval from Anvisa to launch Phase 3 trials of its Sputnik V vaccine. 
      • On December 8, Brazil signed a letter of intent with Pfizer and BioNTech to acquire 70 million vaccine doses in 2021.
      • On June 26, Bolsonaro set aside $356 million to buy the first 100 million doses of the AstraZeneca-Oxford vaccine and support domestic production. Despite being a center for vaccine trials, some experts revealed 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.
    • Reopening plan: In Brazil, reopening measures are determined at the state level.
      • Per a February 5 report—the twentieth revision to the state plan—the São Paulo state government announced that 82 percent of the state was in Phase 2 of five. The remaining 18 percent is in Phase 1 which implies the strictest lockdown and a retreat from previous reopenings in several regions of the state. On May 27, 2020, authorities announced a five-level plan to reopen commercial activity beginning June 1, to be revised according to contagion levels.
      • Rio de Janeiro public schools closed on December 6 with no reopening date set, while shopping centers are to remain open 24 hours a day during the holidays in an attempt to try and avoid large crowds. 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 that started 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:
      • On January 21, 2021, Rio de Janeiro’s mayor said there would be no carnaval celebrations in June 2021—the new date after the typical February celebrations had been postponed—given the second wave of contagion.
      • 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, 2020, at least eight states said they would not follow recently expanded guidelines issued by the Health Ministry, which was temporarily being headed by General Pazuello. Those guidelines encouraged 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 from heading the Ministry 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 December 23, 2020, Brazil shut its land and sea borders once again after reopening them three months earlier. The measure also demanded that, starting December 30, nationals and foreigners must present a negative PCR done no more than 72 hours upon entry via air travel. Entry to the country hinges on foreigners purchasing valid health insurance covering the entirety of their stay. The United Kingdom banned travel from Brazil on January 14 due to concerns over the new Brazilian variant. Washington restricted the entry of non-U.S. citizens from Brazil into the United States starting May 26.
    • School closings and restrictions: The São Paulo state government announced on September 18, 2020, that public and private schools could resume in-person classes on October 7, with the exception of lower and middle public schools, which would reopen on November 3. In Rio de Janeiro, the mayor announced on December 4 that schools would close until further notice. 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. 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:
      • On February 1, 2021, Brazil’s Senate elected Rodrigo Pacheco, a Bolsonaro ally, to lead the upper chamber. Pacheco assured he would find a mid-point between fiscal restraints and economic assistance to Brazil’s poor population amid the health crisis.
      • While Bolsonaro has maintained relatively high approval ratings, they have dropped in the new year. A January 2021 Datafolha poll showed 31 percent of Brazilians see Bolsonaro’s administration as great or good compared to 37 percent in December, while 40 percent see it as bad or terrible, compared to 32 percent in December.
      • 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 took place on November 29.
      • On July 8, 2020, 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: An ECLAC December 2020 report projects Brazil’s economy to contract 5.3 percent in 2020. 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.
    • Fiscal stimulus and economic policy:
      • The government entered the new year with mounting pressure to continue to mitigate the pandemic, despite a determination from the executive branch to reverse the deficit created in 2020. January 2021 talks in Congress signalled a possible renewal of last year’s economic relief package, and on February 8, Bolsonaro confirmed the government is preparing a new round of similar emergency cash transfers to millions of Brazilians. 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.
      • On June 8, 2020, 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 in addition to the roughly $388 million in credit loans the bank announced it would give out to the health sector in March 2020. 
      • On May 27, 2020, Bolsonaro signed a law suspending local governments’ debt payments to the federal government, as well as credit renegotiations, during the state of emergency. 
      • On May 19, 2020, 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, 2020, the government announced the $4.7 billion “Pro-Brazil” economic plan, which rolled out through 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 in 2020 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. August Economic 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 also 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 allowed companies to reduce worker salaries for three months or suspend them for two months, while the government subsidized those affected proportional to the unemployment benefits they can claim.
      • On May 7, 2020, 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 originally 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.
    • Other updates:
      • On February 1, 2021, Fitch Ratings highlighted the importance of revitalizing a fiscal reform agenda this year to increase budgetary capabilities and keep a credible level of spending, particularly given the upcoming October 2022 general elections. The same report showed that the government’s deficit more than doubled to 14 percent of GDP in 2020, from 6 percent in 2019.
      • On November 26, 2020, the Economy Ministry said Brazil hit a record in formal job creation with 400,000 new jobs in October, compared to 71,000 new jobs in the same month in 2019.
      • On September 28, 2020, the government reported a budget deficit of $17.1 billion in August, compared to $9.3 billion the same month last year. The country is on course to post a deficit of $153.5 billion for the whole year, and the IMF projects public debt to jump to around 100 percent of GDP in 2020, according to a report released October 14.
      • On September 4, 2020, Brazil expanded its 2020 government primary deficit from 11 to 12.1 percent, accounting for the extension of emergency aid checks through the year, announced three days earlier.
      • Brazil lost 1.2 million formal jobs in the first six months of the year, according to figures from the Economy Ministry released on July 28. 
      • On May 22, the Economy Ministry reported that national debt will hit record levels in 2020 due to the health crisis, with gross national debt reaching 93.5 percent of GDP, and net debt at 67.6 percent of GDP. A day earlier, the Economy Ministry announced that pandemic-related measures will cost Brazil roughly $62 billion on 2020’s primary budget balance.
      • The Health Ministry estimated the pandemic would cost the healthcare system just under $2 billion.
    Chile

    Latin American GDP Dives as COVID-19 Deepens

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    Government response

    • Vaccine plan: Chile’s vaccination campaign began on December 24 when it received its first 10,000 doses of the Pfizer vaccine. As of February 9, the country had vaccinated over one million citizens, most of whom are front line workers and the elderly. This makes them the most successful country in Latin America so far at administering the vaccine. Chile is using a combination of AstraZeneca, Johnson & Johnson, Pfizer, and Sinovac vaccines. The government has been in talks with Russia over using the Sputnik V vaccine.
    • On December 11, Science Minister Andrés Cuove confirmed the country plans to immunize approximately 16 million people, 5.8 million of them by the first quarter of 2021. 
      • A bill to make a coronavirus vaccine mandatory was introduced in Chile’s Congress on January 5, 2021 by the Christian Democratic Party. Several vaccines, including smallpox and whooping cough, are already mandatory.
    • Reopening plan: On July 20, 2020 the government announced a new “Step by Step” reopening plan based on each of the 346 commune’s infection rate. The plan’s five phases are: quarantine, transition, preparation, initial opening, and advanced opening. By November 19, 63 communes were 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.
      • As of February 11, 2021, 10 communes are in stage 4, 134 in stage 3, 132 are in stage 2, and 69 are in stage 1.
      • A 7 percent surge in COVID-19 cases on January 18 prompted the government to revert thirteen communes to the transition stage, Phase 2. Only one region advanced to the preparation stage, Phase 3. The metropolitan region of Santiago remained in the transition phase as cases there stabilize. Following a 53 percent surge in COVID-19 cases between November 14 and December 10 in the metropolitan region of Santiago, the government reissued total lockdowns on weekends (Phase 2). 
        • This map demarcates the phase of reopening of each commune and region.
    • Mitigation measures:
    • Travel and border restrictions: On November 23, Chile’s Arturo Merino Benítez International airport opened 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 had closed all borders as of March 18, allowing only Chilean citizens to reenter the country with an obligatory two-week quarantine.
    • School closings and restrictions: On November 19, the Education Ministry announced that the 2021 school year would officially begin March 1 with in-person classes. By the time of the announcement, 53 percent of schools—or 755 out of 1,424—had returned to in-person classes to complete the 2020 school year. 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:
      • A February 1 Cadem poll showed Piñera’s approval rating sat at 19 percent. His disapproval rating was 72 percent, 1 percent higher than in a poll two weeks earlier.
      • 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 businesses, 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: ECLAC’s December 2020 report projects a 6 percent contraction for the country in 2020. On December 9, Chile’s Central Bank revised its forecasted GDP contraction for the year to fall between 5.75 and 6.25 percent. The country is not expected to recover to pre-pandemic GDP levels until 2022.
    • Fiscal stimulus and economic policy:
      • Over 2020, the Chilean Central Bank recorded a 22 percent drop in its net profit, compared to 2019. They have kept interest rates low to stimulate economic growth.
      • On January 14, the state-owned copper producer, Codelco, announced it would be reenacting precautionary measures on its sites, including a reduction in on-site personnel.
      • On December 4, Congress approved a bill allowing for a second 10 percent early withdrawal from pensions funds, which led to more than 3.5 million Chileans making the requests digitally on the first day the pension funds made their online portals accessible. 
      • 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 Solidarity 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 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 could have reached 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 established 180 care centers, including 22 centers that focus just on the elderly and vulnerable populations, as well as more than 1,000 ICU beds and 80 drive-by facilities that 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, 2020, Piñera announced a new labor law regulating and facilitating remote work, including mandatory requirements that stipulate work vs. personal time. 
      • Also on 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: Colombia’s economy contracted 7.0 percent in 2020, and ECLAC projects it will grow 5.0 percent in 2021. 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.
    • 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 incorporated 13 strategies, with special focuses on promoting job creation, the knowledge economy, and international e-commerce. 
      • On October 20, the Duque administration announced a 12-point, $5.2 million plan to facilitate financing for all-sized Colombian businesses. The measures included everything from new direct credit lines to preferred financing terms to extended grace periods for loan repayments.
      • On October 19, the Colombian Congress approved a budget for 2021 that was 19.2 percent bigger than the 2020 budget. The budget includes the country’s biggest increase in public spending in the last 12 years and a lesser focus on debt repayments, although it will still disburse more for debt payments than public spending on the whole. The biggest line item in the budget is for education, followed by public security and then health and social services.
      • Duque announced a series of economic relief measures on March 18, including accelerated tax refunds, a grace period on mortgage and loan payments for small- and medium-sized enterprises, and special lines of credit for the agriculture, tourism, and aviation sectors.
      • On June 3, the Duque administration expedited a measure that allows companies whose revenues have fallen by at least 20 percent to delay paying out employee bonuses and overtime pay from the first half of the year until December 20 at the latest.
      • Per a decree issued May 8, the government will subsidize 40 percent of the $250-per-month minimum wage for workers at companies who have seen revenues drop by at least 20 percent during the pandemic. In contrast to the first economic package, which routed funds through banks to issue credit lines to businesses, with the second decree the government gave the money directly to companies. On September 22, the government announced plans to issue another round of subsidies in December to cover worker bonuses for businesses whose revenues fell by 20 percent.
      • On April 8, the mayor of Bogotá announced she would allocate $128 million to a project aimed at providing half a million lower-class families in the capital with financial support.
    • 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. 
      • 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:
      • 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. 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. 
    Costa Rica

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    Government response

    • Vaccine plan: Costa Rica signed a deal with Pfizer/BioNTech to secure 3 million vaccine doses for $36 million, which are expected to begin arriving in the first quarter of 2021. As of February 8, over 75,000 people or 1.1 out of every 100 had been vaccinated. Vaccination began with first responders and high-risk residents and is free for all citizens and residents. The country’s National Emergency Commission had dedicated $70 million to this vaccine effort through December 8, 2020, including specialized freezers to store vaccines.
    • Reopening plan: September 2020 brought a new reopening strategy for the country. The plan involved a transition phase running from August 31 to September 8 and a controlled reopening phase, which began September 9. The transition phase only affected cantons under an orange alert (see mitigation measures for alert levels) and mandated that a number of commercial businesses close for the time period. Under the controlled reopening phase, most commercial businesses are open nationwide, except those involving large gatherings such as bars and casinos. Below is a list of previous 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.
      • In February 2021, the government eliminated the national weekday driving restrictions that had been in place since March 2020. San José’s pre-pandemic driving restrictions and weekend driving restrictions—which include a 10 p.m. to 5 a.m. movement restriction—are still in effect.
      • As of February 9, 2021, 19 out of 82 cantons were under orange alert due to rising cases while the rest of the country remained under yellow alert. Alajuela province had the most orange alert cantons while Guanacaste and Heredia had no orange alert cantons.
      • Face masks are required indoors, the Health Ministry announced July 20 after making their use mandatory in most public spaces in late June.
      • On May 18, Costa Rica began to restrict foreign cargo transit into the country to limit the spread of the coronavirus within its borders—leaving hundreds of truckers stranded and causing other countries in the region to retaliate (see Nicaragua section). When it comes to cargo meant for Costa Rica, truckers must leave the merchandise at the country’s border so that local carriers can complete its delivery. Costa Rica conducts approximately $3.4 billion in trade annually with its Central American neighbors, or about $10 million a day.
      • Alvarado declared a national state of emergency on March 16 that went into effect on March 18. Before that, on March 12, the government had already ordered public spaces to operate at 50 percent capacity and canceled international travel for public-sector workers. Large gatherings were also suspended.  
    • Travel and border restrictions: Costa Rica opened for all tourists traveling by air beginning November 1. Land borders into Costa Rica are closed through at least March 2021. 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 expanded since August 1 leading to a gradual opening.
    • School closings and restrictions: In-person schooling resumed in Costa Rica in February 2021 for students in the fifth grade and up. The government encourages schools to use a hybrid model of in-person classes and distance learning when possible. Costa Rica ordered universities to close and suspended public and private schools starting in March 2020 and eventually ordering virtual learning for the remainder of 2020.
    • 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.

    Economic impact and measures

    • GDP forecasts: ECLAC’s December 2020 report forecasts Costa Rica’s GDP will shrink by 4.8 percent in 2020, its largest fall in four decades. 
    • Fiscal stimulus and economic policy: Costa Rica negotiated a $1.75 billion loan from the IMF to address the financial strain of the pandemic. Alvarado proposed additional tax measures as part of the negotiations, only to retract the proposal after mass protests.
      • Previously, Alvarado announced in July 2020 that the government is making its largest cut to public spending in the country’s history due to the pandemic. The cuts are equivalent to 1 percent of Costa Rica’s GDP and 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 dropped to 21.3 percent for October to December, an improvement over the record-high rate of 24.4 percent covering May through July. Women are disproportionately affected, facing 25.2 percent unemployment, compared to 16.4 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

    • Vaccine plan: In August, Cuba became the first Latin American country to begin testing its own vaccine. By the end of November, its Center for Genetic Engineering and Biotechnology (CIGB) had four vaccine candidates under development: Soberana 01, Soberana 02, Mambisa, and Abdala. The most advanced of the vaccines, Soberana 02, is in its third stage of trials. Once this is completed, Cuba plans to produce 100 million doses, which it intends to offer to its own population, to tourists, and to foreign nations like Vietnam, Iran, and Venezuela. The Abdala vaccine is the second most developed and is in the second stage of trials. Authorities plan to vaccinate the entire Cuban population in 2021.
    • 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. Under the initial transmission phase, the Defense Councils across the country set up quarantines in neighborhoods or municipalities with suspected or confirmed local transmission. Hospitals and outpatient services reopen at 50 percent capacity under phase one and then increase to 75 percent and 100 percent capacity under phases two and three respectively. Workers who saw their jobs interrupted due to the pandemic will continue to receive 60 percent of their basic salary in the first two phases, as has been the case since April 2020. However, starting January 14, Cuba announced a new lockdown, shuttering bars and restaurants. Public transportation will stop at 9 pm and roads to Havana will be limited. The government plans to impose fines on anyone who violates restrictions.
      • Public and private transportation—which has been shut down since April 11—begins to operate under phase two.
    • Mitigation measures: 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: Starting in January 2021, the nation announced it was reducing the number of flights into the island and that visitors would need to show a negative coronavirus test in order to be granted entry. Visitors who arrive after February 6 need to quarantine in hotels until they receive their negative result. The government claimed that 70 percent of coronavirus cases since November 15 are linked to international travelers. This, alongside restrictions on transportation in many provinces, has walked back attempts to restart mobility on the island. International commercial flights were initially suspended April 2, 2020, though Cuba slowly reopened travel to tourists in select areas in June and more generally in November 2020 with the opening of the José Martí International airport in Havana.
    • School closings and restrictions: On December 9, Education Vice Minister Dania López said the 2019-2020 school year concluded without any cases of COVID-19 transmission. Schools reopened in September after being closed since late March in provinces under the “new normal,” while schools in Havana opened on November 2. However, due to a spike in infections in January 2021, schools were closed again.
    • Other updates:
      • Cuba deployed medical brigades to over 39 countries to support local efforts as of November 2020.

    Economic impact and measures

    • GDP forecasts: In December, ECLAC projected an 8.5 percent GDP contraction for 2020, whereas at the beginning of the year, Cuba’s Minister of Economy and Planning Alejandro Gil estimated that the country’s economy would grow by 1 percent. 
    • Fiscal stimulus and economic policy: In the midst of its worst economic recession since the collapse of the Soviet Union, the government initiated the country’s long-awaited monetary unification on January 1, 2021. The government had also announced a series of economic measures on July 16, 2020 that went into effect on July 20, such as 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:
      • Despite the Trump administration’s tightening of sanctions this year, a cohort of Cuban-Americans organized a shipment of $100,000 in medical supplies that arrived on the island December 10.
      • 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. These measures have remained in place through February 2021.
    Dominican Republic

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    Government response

    • Vaccine rollout: The government contracted 10 million doses of the AstraZeneca vaccine, which are estimated to arrive in February 2021, and 8 million doses of the Pfizer-BioNTech vaccine. The Dominican Republic is also promised 2 million vaccines by the end of 2021 via COVAX, the joint World Health Organization and the Global Alliance of Vaccines and Immunization program.
    • Reopening plan: Then-President Danilo Medina announced on May 17 the government’s plan to partially reopen the Dominican economy beginning on May 20. 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. Here is a list of what has happened with the re-opening 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 had 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: Initially instituted in March 2020, the country’s curfews have fluctuated depending on the case count. Most recently, Abinader loosed curfew hours from 7 p.m. to 5 a.m. on weekdays and 5 p.m. to 5 a.m. on weekends until February 8, 2021. A 3-hour grace period after the beginning of curfew is enforced to give people an opportunity to get home. Restaurants are permitted to operate at 50 percent capacity, after being closed from December 30 to January 11. Below is a chronology of measures taken by both presidencies:
      • Starting in October 2020 and extended until December 1, a modified national curfew went into effect. The curfew allowed two additional hours of activity on the weekend compared to September.
      • Under Medina’s state of emergency, two curfews were in effect starting July 21 based on the level of contagion in each province. 
      • 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 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, included 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 began September 15, no longer requires tourists to present a negative test result upon arrival. The government performed random tests at their airport instead. The government offered free health insurance to tourists to cover any coronavirus-related costs, through the end of 2020.
    • 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 in March 2020. 
    • 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. 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 ECLAC’s December report projects a GDP contraction of 5.5 percent for 2020 in the Dominican Republic. The contraction is a notable shift from the World Bank’s April forecast in which it estimated that the economy would neither grow nor contract. 
    • 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 received 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 also received this assistance. An additional 70,000 homes were added to the program on April 23.
    • Other updates:
    Ecuador

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    Government response

    • Vaccine plan: As of January 19, Ecuador has four agreements to acquire a total of 18 million doses—60 percent of its total need—including 2 million from Pfizer/BioNTech, 2 million from the U.S. firm COVAXX, 7 million from AstraZeneca, and 7 million via the WHO’s COVAX initiative. Health Minister Juan Carlos Zevallos said the initial goal of vaccinating 30,000 people a day—at which rate it would take until about July 2022 to vaccinate Ecuador’s 17.6 million people—was modest. Officials say the roughly 180,000 Ecuadorans who’ve recovered from COVID-19 will not be eligible for a vaccine, saying it could pose a health risk to them.
    • Reopening plan: Ecuador’s nationwide curfew and driving restrictions ended on September 12, when the state of exception—in place since March 16—expired. The country’s Constitutional Court, which twice before approved President Lenín Moreno’s requests for 60-day states of exception that were then each extended 30 days, ruled on August 24 that it would not approve a third such request. While there’s no constitutional limit on how long Ecuador can be under a state of exception during a given period of time, the court based its ruling on the idea that a state of exception should be just that—exceptional—and to continue to approve states of exception permanently, especially in light of an indefinite pandemic, would “distort the essence and constitutional purpose.” The ruling encouraged the government to adapt its response to the health crisis to be a long-term one within the regular laws.  The country began to loosen some restrictions and shift from social isolation to social distancing on May 4 via a three-color system based on the contagion levels in a given municipality.
    • Mitigation measures: Moreno declared a national health emergency on March 11, and then announced a state of exception on March 16. During the latter, there was a nightly curfew from 9 p.m. to 5 a.m., as well as limits on the circulation of cars, and in-person classes were suspended. During the 90 days of Ecuador’s first state of exception, Moreno signed 56 executive decrees, sent three bills to Congress, and implemented a major economic relief plan. He issued a second state of exception, this one for 60 days, on June 15.
      • In an effort to perform contact tracing as the city reopens, Guayaquil began sending health monitors to 17 city zones on July 8 to screen the symptoms of 1,600 people daily.
      • On the evening of March 15, Moreno announced people’s movements within the country would be restricted except to buy food, medicine, and basic goods. Also banned are all non-essential commercial activities. 
    • Travel and border restrictions: Ecuador’s airports reopened to both domestic and international flights on June 1 at 30 percent of their usual capacity. In June, the Guayaquil airport recorded just 5.9 percent of the number of travelers it did the same month a year before. On June 23, Ecuador and Colombia announced a plan to allow nationals stranded in each other’s countries to return home via one land border crossing. Ecuador’s borders closed to nationals and residents on March 16 and to foreigners on March 15. Venezuelans in Ecuador had until August 13 to apply for a humanitarian visa to be able to stay in the country, though migrant rights groups argued the $50 application fee was too much for migrants to be able to come up with in the given time.
    • School closings and restrictions: On March 12, authorities announced the suspension of all classes in educational institutions starting March 13. Some secondary classes resumed virtually on May 4, and some university ones on July 1.

    Economic impact and measures

    El Salvador

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    Government response

    • Vaccine plan: On November 26, 2020, Bukele announced that El Salvador would acquire four different vaccines and that it had entered into an agreement with AstraZeneca to purchase 2 million doses. The vaccine is slated to be rolled out in the first half of 2021 and will be free and voluntary. Bukele also said front-line workers—medical professionals, police, and soldiers—followed by people over 50 years old and those with chronic health conditions would be prioritized.
      • On February 1, 2021, PAHO announced that El Salvador would be among the first 18 countries worldwide to gain access to vaccines through the COVAX mechanism. El Salvador was one of 72 countries that in January petitioned COVAX for vaccines that do not require high levels of refrigeration, due to lack of capacity.
      • On December 30, 2020, El Salvador approved the AstraZeneca-Oxford vaccine for use.
    • Reopening plan: El Salvador’s management of the pandemic has been marked throughout by institutional battles that predate 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 gave rise to U.S. warnings to Bukele of aid cuts, per a September 3, 2020, 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 2020, 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 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 Salvadorans 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 were 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, 2020, 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. El Salvador has made good on the threat, and also fined airlines for transporting passengers with the virus. 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: School reopenings have been repeatedly delayed since Bukele initially ordered all schools and universities to close on March 11, 2020. Education has since taken place via internet, radio, and television. In January 2021, the Education Ministry once again delayed reopening, saying schools would stay shuttered until further notice. 
    • Other updates:
      • The wear and tear on El Salvador’s institutions throughout the pandemic has not escaped international attention. In February 2021, the Biden administration allegedly rejected a request to meet with Bukele during a trip to Washington, signaling the bilateral relationship is under review, although the Salvadoran president denied he’d sought such a meeting during the trip. 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 in which UN High Commissioner on Human Rights Michelle Bachelet raised similar concerns. 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.
      • 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.
      • 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. 
      • 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. 

    Economic impact and measures

    • GDP forecasts: In January 2021, the World Bank forecasts that El Salvador will see growth of 4.6 percent in 2021 while ECLAC forecasts that the country’s 2020 contraction will end up being 8.6 percent. 
    • 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

    • Vaccine plan: In January, Guatemala’s legislature approved a motion to purchase additional vaccines. In December 2020, the president said the legislation will allow for the country to acquire 2.5 million additional vaccine doses. The type of vaccine intended to be purchased was not shared at time of the announcement. The Health Ministry inaugurated a refrigerated facility on December 15 to prepare for the arrival of vaccines. Guatemala is part of the COVAX vaccine plan through which, per El Periódico, the country will receive 6.7 million doses for 3 million people (the country has a population of 18 million) in the first half of 2021. A December 13 Prensa Libre article said experts expect the vaccine will arrive in the country in March 2021.
    • 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. Alerts levels are assessed every 15 days. 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. 
    • Mitigation measures: Guatemala’s containment measures were based on a state of calamity first announced on March 6, 2020, for 30 days and extended each month since then. The state of calamity allows the government to enforce a range of measures over time, such as preventing price gouging, halting gatherings, and implementing weekend and evening curfews.
    • 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, 2020. 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. With the classes concluding on December 15, the Ministry announced that public school classes would restart on February 15 and private school classes could begin January 4. Schools located in the highest alert level (red) would continue to run virtual classes. Early in the pandemic, the government announced on March 14 that schools would close for three weeks but this time period was extended. 
    • Other updates:
      • 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.” 

    Economic impact and measures

    • GDP forecasts: ECLAC estimates a GDP contraction of 2.5 percent for Guatemala in 2020. In November, Fundesa forecast GDP growth of between 3.0 percent and 3.5 percent for 2021.
    • Fiscal stimulus and economic policy: On June 10, the IMF’s executive board approved $594 million in emergency assistance to Guatemala amid the pandemic. On March 12, Congress approved the president’s proposed state of calamity bill with a fund of roughly $30 million for prevention and containment.
    • Social programs: 
      • On May 7, 2020, Nomada.gt detailed the 10 government assistance programs set up to mitigate the pandemic’s economic effects, ranging from a daily minimum payment of $10 for workers laid off in the formal sector, to foodstuffs and food coupons for vulnerable populations, to a daily credit going to 200,000 families to cover breakfasts for public school students.
      • On April 29, Giammattei vetoed an April 3 legislative measure that would have guaranteed citizens access to basic services during the pandemic. On April 30, the legislature overturned the veto. On May 3, Giammattei, said no law was needed as he had come to an agreement with business leaders that water, electricity, phone, and internet services will not be suspended in cases of unpaid bills and that people could negotiate one-year repayment plans with these companies. On May 21, legislation guaranteeing public services during the pandemic was published in the government’s official gazette. 
      • On March 25, the Guatemalan Congress approved an emergency bill named the "Emergency Law to Protect Guatemalans from the Impact of the COVID-19 Pandemic" with a fund of roughly $480 million to cover elderly, health, employment, security, and economic programs during the emergency.
    • Other updates:
    Honduras

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    Government response

    Economic impact and measures

    • GDP forecasts: ECLAC’s December 2020 report forecasts an 8 percent GDP contraction in 2020—a record for Honduras.
    • 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 Hondurans prior to the pandemic.
    Mexico

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    Government response

    • Vaccine plan: The AMLO government announced its vaccination plan on December 8, including a five-stage rollout that began with a first phase starting in December focusing on health workers. What follows is an age-based schedule beginning with people 80 years and older, followed by 10-year age blocks with the goal of vaccinating those 60 years and older in February and March. In the third phase, people 50 to 59, then 40 to 49 can get vaccinated in April and May. The last phase, involving Mexicans under 40, starts in June and is expected to run through March 2022. López-Gatell said the armed forces will aid with the vaccine’s rollout.
      • Despite the rollout plan, vaccinations slowed to a near trickle in early February 2021, largely due to a slowdown in shipments of vaccine supplies, notably from Pfizer. As of February 8, just 718,000 doses had been administered. During a press conference that month, Foreign Minister Marcelo Ebrard said Pfizer shipments would again commence during the week of February 15.
      • With supplies diminishing, Mexico has sought to sign contracts with a number of vaccine manufacturers. As of February 9, the country had approved five: Pfizer, AstraZeneca, Sputnik V, CanSino, and SinoVac. In addition, CureVac, Johnson & Johnson, and NovaVax were conducting or had plans to conduct clinical trials in Mexico as of February.
      • On February 2, the government launched an online platform allowing people 60 and older to register for vaccines, but faced technical problems amid a flood of users. Within a week, nearly 4 million people had registered. 
      • López Obrador spoke with Russia’s Vladimir Putin on January 24, during which the two leaders agreed Moscow would send Mexico 24 million doses of the Sputnik V vaccine in the coming months. Following transparency concerns about the vaccine, a February 2 article in The Lancet supported its efficacy rate of 91.6 percent. On the same day, Mexico authorized Sputnik V for emergency use. 
      • On January 20, the active substance to produce the two-dose AstraZeneca vaccine arrived in Mexico from Argentina to produce 6 million doses that are estimated to be ready for use as early as late March. On January 4, Mexico approved use of the AstraZeneca-Oxford vaccine. On August 13, the Mexican government announced that, in partnership with Argentina, the two countries would produce it. Production, which could reach as many as 250 million doses to be shared region-wide, will be funded by billionaire Carlos Slim in partnership with AstraZeneca. López Obrador has said distribution in Mexico will be “universal and free.”
      • On December 27, a government spokesman tweeted the vaccine doses for which Mexico had thus far signed accords to arrive in 2021: 34 million doses of Pfizer (which is a two dose vaccine), 77.4 million of AstraZeneca (two dose), 35 million of CanSino (one dose), and 51.5 million via the WHO’s multilateral COVAX plan.
      • On December 27, a government spokesman tweeted the vaccine doses for which Mexico had at that point signed accords to arrive in 2021: 34 million doses of Pfizer (which is a two dose vaccine), 77.4 million of AstraZeneca (two dose), 35 million of CanSino (one dose), and 51.5 million via the WHO’s multilateral COVAX plan.
      • On December 24, the country began to vaccinate the first of its 1.4 million health workers after an initial shipment of 3,000 doses of the Pfizer-BioNTech vaccine arrived a day earlier. On December 11, Mexico became the fourth country in the world and first in Latin America to authorize use of the Pfizer vaccine.
    • Reopening plan: The Mexican government announced its three-phase reopening plan to achieve a “new normal” on May 13, 2020, 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. After a period of preparation, on June 1 the government launched a system of 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). 
      • As of February 6, 2021, the Health Ministry had 13 states at alert level red, 17 states at alert level orange, two at alert level yellow, and none at the safest level of green. This represents a sharp uptick in contagion and hospitalizations in various parts of the country, given that Mexico ended 2020 with just three states at alert level red and began the year with five. 
      • 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—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, which he’d initially suspended on April 15. He made the first international trip of his presidency on July 7 when he headed to the United States for an official meeting with then-President Donald Trump to celebrate the July 1 implementation of the USMCA trade deal. Since early in pandemic days, López Obrador’s lax approach to the virus drew concern given his weekend travels that frequently occur on commercial flights.
    • Mitigation measures: May 31, 2020 marked the last day of Mexico’s National Period of Healthy Distancing ahead of June 1. 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 also limited 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 had 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, 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 January 11 that they would be extending border restrictions—first implemented March 21, 2020 and since extended monthly for North America—until February 24. The restrictions apply to non-essential crossings but not commerce. Mexico is the top international destination for U.S. travelers and there have been numerous stories published by major media outlets that tourists, facing restrictions in much of the world, are taking trips to Mexico and contributing to contagion.
    • School closings and restrictions: Schools closed in March 2020 and have yet to reopen. In October 2020, the education minister said that schools would not open in a rushed manner. He previously 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. Public school 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.

    Economic impact and measures

    • GDP forecasts: On January 29, 2021, Mexico’s statistics agency reported that the country saw GDP contract 8.5 percent in 2020, the biggest drop since 1932. In a February 9 blog post, the IMF predicted the country would see 4.3 percent GDP growth in 2021, but cautioned that the impact of new outbreaks could weigh down recovery. After months of gloomy GDP indicators, Mexico saw a 12 percent bounce in the third quarter of 2020, thanks to the reopening and per preliminary figures. GDP contracted 18.7 percent year on year in the second quarter of 2020, marking its biggest tumble since it began being registered in 1993 and the fifth consecutive quarter of GDP contraction. 
      • On May 21, the president announced that the country will start measuring an alternative GDP index that takes into account areas such as well-being, social inequality, and happiness.
    • Fiscal stimulus and economic policy:
      • The austerity-focused López Obrador government has resisted a broad stimulus package, with the Financial Times reporting in January 2021 that his stimulus plan is equivalent to 1.1 percent of GDP—less than a quarter of the regional average—and an eighth of what Brazil has spent, based on proportion of GDP. 
      • A June 2020 FT report found that Mexico’s microloan program, which initially offered 1 million credits on March 24 and has been expanded to 4 million, had distributed about 1.5 million credits and with no loan larger than $1,100. As of May 22, López Obrador said his administration had given out $1.9 billion in microloans to homeowners, the formally and informally employed, and SMEs, with the goal to award $13 billion in credits overall. 
      • On April 26, a business association known as the Mexican Business Council announced a private-sector agreement with the Inter-American Development Bank to help give loans of up to $12 billion to about 30,000 micro-, small-, and medium-sized enterprises amid the pandemic. During his April 27 press conference, López Obrador expressed suspicion of the pact, saying, “I don’t like the way they come to an agreement and want to impose their plans. Things aren’t like they used to be.” Also during the morning conference, the labor minister named companies that had not complied with work suspension rules.
      • On April 22, López Obrador announced an 11-point economic plan amid the pandemic. Measures include pay cuts of as much as 25 percent for high-level public workers, the elimination of 10 deputy minister posts, and a commitment to austerity. His administration’s social programs and infrastructure projects—such as the Dos Bocas oil refinery, an airport expansion, and a train system—will continue. The president had previously confirmed that these major projects would go ahead in an April 5 speech.
      • In an extraordinary session on April 21, Banco de México unveiled a $31 billion stimulus and cut its benchmark interest rate by 50 basis points to 6.0 percent. Taken together with prior measures, the moves amount to 3.3 percent of the 2019 GDP and will cover financing for banks to boost credit for small- and medium-sized businesses, as well as implement hedge transactions to decrease the peso’s volatility. The Bank had previously taken the same step on March 20, when it trimmed the rate to 6.50 percent.
    • Social programs: Pandemic relief comes in the form of social programs that largely amount to cash transfers. These programs, which benefit populations such as the elderly with pensions or youth with scholarships, existed prior to and separately from the arrival of COVID-19. A February 2021 assessment of the social programs by the autonomous agency Coneval suggested that the programs fell short of offering an integrated approach to development, particularly in the pandemic context. Despite these social programs, Coneval reported that, 11 months into the pandemic, as many as 9.8 million Mexicans had fallen below the poverty line during the health crisis and one in four Mexicans were living in extreme poverty. 
    • Other updates:
    Nicaragua

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    Government response

    • Vaccine plan: As of January 14, 2021, Nicaragua plans to use three vaccines: Russia’s Sputnik V, AstraZeneca, and India’s Covaxin. Vice President Rosario Murillo claimed that the government has purchased 7.4 million doses of the vaccines. They aim to vaccinate 55 percent of the population (about 3.7 million people), though they have not announced a start date. In February, 504,000 doses of the AstraZeneca vaccine are expected to arrive through the WHO’s COVAX program. Nicaragua is also receiving financial support from the Central American Bank for Economic Integration and the Inter-American Development Bank. 
    • 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 on July 20 at an event commemorating the forty-first 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:
      • From June to September 2020, Nicaragua spent more than 10 million dollars on medical supplies. This was revealed to be part of the conditions to receive a loan from the IMF.
      • As of February 2021, testing for the virus only occurs at the Ministry of Health building in Managua, resulting in long lines. This single location makes accessibility difficult for residents of the country’s border areas and Caribbean coast.
      • In the wake of the storms’ destruction in indigenous regions, experts warned of the precarious conditions of make-shift shelters where few are adhering to social distancing guidelines.
      • 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 2020, 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: On December 16, ECLAC revised its annual projections for the region, estimating a lighter economic contraction of negative 4 percent GDP growth for Nicaragua. June projections from the World Bank showed that Nicaragua’s economy would contract by 6.3 percent in 2020. 
      • Figures from 2020 show an over 20 percent contraction in business for the country’s textile industry. There was a 14 percent contraction in business for Nicaragua’s free trade zones.  
    • Fiscal stimulus and economic policy: On December 8, the World Bank Board of Directors approved $20 million in financing for a Nicaragua COVID-19 Emergency Response Project meant to aid in the provision of medicines and lab and hospital equipment, targeting 6.3 million of the country’s most vulnerable inhabitants. The loan can be used over two years and three months and matures in 30 years. 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, 2020, 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

    Economic impact and measures

    • GDP forecasts: ECLAC’s December 16, 2020, projections for the country point to an 11 percent GDP contraction in 2020. 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: Overall, the government has spent $1.4 billion on pandemic-related expenses so far, per a February 9, 2020 presentation by Minister of Economy and Finance Héctor Alexander. On May 27, 2020, 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 January 19, 2021, the IMF announced it will provide a $2.7 billion line of credit to Panama. The two-year arrangement is part of the IMF’s Precautionary and Liquidity Line and is meant to help countries recover from “extreme external shocks.”
      • 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 $300 million from the Inter-American Development Bank for medium and small companies and the agricultural sector. 
      • On March 26, 2020, 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.
      • The government has passed a number of measures aimed at stimulating the economy including a package increasing manufacturing competitiveness, a bill to make it easier for foreigners to invest in retail estate, and measures to make the country more attractive for filming.
      • In February 2021, Fitch Ratings and Moody’s downgraded Panama’s risk rating from BBB to BBB-, citing the poor economic management of the pandemic as rationale for the downward revision.
    • 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, 2020, 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, 2020, 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

    • Vaccine rollout: On February 2, 2021, the government announced an “action plan” for vaccination including three phases. The first phase involves healthcare workers and adults over 60 years of age, followed by adults between 18 and 59 years old, high-risk groups, essential workers, and indigenous populations, and lastly airport and land border workers, police and military personnel, and the rest of the population. Starting February 10, healthcare workers became able to sign up for vaccine appointments using an official Health Ministry online form. Earlier, on January 15, the Health Ministry announced a budget of $90 million to acquire vaccines outside the WHO COVAX plan, and on the same date, the country became the fourth in Latin America to approve emergency use of the Russian Sputnik V vaccine. The government had announced on December 13, 2020, that COVID-19 immunizations will start in the second quarter of 2021, with 4.3 million doses guaranteed for 30 percent of the population, based on negotiations with the COVAX Facility. In December 2020, Health Minister Julio Mazzoleni announced that Paraguay was in talks with five foreign pharmaceutical firms to purchase up to 4 million vaccine doses (for the country of roughly 7 million)—in addition to those already secured via COVAX—that are expected in May or June 2021 for a price of about $40 million.
    • Reopening plan: On January 31, 2021, the government extended stricter health regulations for a second time for commercial, professional, and educational establishments, as well as sports facilities, social, and religious spaces through February 21, subject to further extensions. Starting December 7, 2020, the government tightened restrictions for two weeks after new cases rose to over 1,000 per day.
    • Mitigation measures:
      • Starting January 11, 2021, through the end of the month, the government announced new measures to stop the spread of COVID-19, including a midnight to 5 am curfew; only delivery services and pharmacies may remain open for 24 hours a day; alcohol sales outside restaurants are banned from 10 pm to 5 am; public social gatherings are capped at 100 people and private social gatherings at 12 people.
      • In August 2020, the Health Ministry announced that an additional 1,420 health professionals were trained in the National Health Institute to augment the number of those able to serve in intensive care units, as COVID-19 case numbers continue to increase. The Health Ministry’s National Blood Program on July 8 called for Paraguayans who have recovered from the virus to participate in trials to donate blood plasma to help allow active cases to combat the disease.
      • In April 2020, the government released a new online tool, MapaInversiones, by which the public can access government information on how it’s using resources amid the health emergency, part of a transparency campaign supported by Inter-American Development Bank. On March 16, the presidency declared a health emergency in the entire country under Decree 3456. 
    • Travel and border restrictions: On October 15, 2020, the government reopened the three main land border crossings with Brazil. Arrivals 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 that, beginning October 21, the Asunción airport would 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. 
    • School closings and restrictions: On January 11, 2021, the government announced that university classes will reopen with a cap of 20 students attending in person, and up to 50 students at a time may sit for university entry exams in person. School closures were first announced on March 10, 2020.
    • 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. They were originally scheduled for November 2020.

    Economic impact and measures

    • GDP forecasts: Paraguay’s GDP is projected to grow 3.5 percent in 2021, per a December 2020 ECLAC report, after a 1.6 percent contraction in 2020.
    • Fiscal stimulus and economic policy:
    • Social programs:
      • When Alto Paraná became the country’s hotspot due to an increase in cases in early August, 2020, 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 had distributed $1.2 billion 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 included workers who earn more than 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 an earlier Ñangareko program announced on March 25 provided money transfers for food and hygiene products to roughly 33,000 families whose income has been affected by quarantine.
    • Other updates:
    Peru

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    Government response

    Economic impact and measures

    Puerto Rico

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    Government response

    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:

     

    Uruguay

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    Government response

    • Vaccine plan: The government announced on January 23, 2021, that it purchased some 3.8 million vaccines to immunize 2.8 million Uruguayans (80 percent of the country’s 3.5 million population). Of those, 2 million are the Pfizer-BioNTech vaccine, and close to 1.8 million are from Chinese laboratory Sinovac, which are set to arrive between February and March. An additional 1.5 million vaccines are slated to arrive in March from the WHO’s COVAX program for $2.5 million. Vaccination will not be mandatory in Uruguay.
    • Reopening plan: On February 8, 2021, the government began reopening museums with crowd control measures, as well as social distancing in an initiative to support cultural programs. The government approved a protocol to reopen certain businesses under strict health guidelines starting June 29, 2020, such as hotels—where guests will have their temperature taken upon arrival, restaurants, bars, and cafés. Most shopping malls started reopening June 9, with businesses and shoppers required to wear face masks and follow social distancing and hygiene protocols.
    • Mitigation measures:
      • Given a rise in cases, the government announced heightened measures beginning December 1, 2020, including closing government offices and switching to remote work. President Luis Lacalle Pou encouraged private offices to go remote as well but did not require it. The restrictions were set to last through December 18, with the possibility of extension.
      • 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.
      • Lacalle Pou announced in a July 21 press conference that while he would not roll back some opening measures already 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, 2020, 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 February 7, 2021, the country’s testing rate was 255.97 per 1,000 people, the third highest in Latin America, after Chile and Panama. On May 10, the Montevideo government also made the use of face masks on public transport mandatory. 
    • Travel and border restrictions: On January 27, 2021, the government announced the reopening of borders only to nationals and foreign residents, a return to a December 2020 “partial border closing.” Air, land, and sea borders remain shut to tourists and all other non-commercial traffic until further notice. The government first announced the total closing of land, sea, and air borders on March 25.
    • School closings and restrictions: While government workers returned to remote work in December, in-person classes will continue through the academic year, though extracurricular activities are suspended. Students had resumed in-person classes beginning October 13. Students who live with at-risk people in their homes have the option to attend 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.
    • 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, 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: A December 2020 ECLAC report projected Uruguay’s GDP to grow 4 percent in 2021 and estimated a 4.5 contraction in 2020.
    • Fiscal stimulus and economic policy: On February 8, 2021, the Economy Ministry presented the country’s macroeconomic outlook and informed that over $1.2 billion was allocated to fight the pandemic. The country also received $1.57 billion in 2020 investments. Examples of the country’s lauded economic mitigation efforts follow.
      • The government announced $7.7 million in subsidies on November 12, 2020, 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. 
    • Social programs:
      • The Coronavirus Fund, set up in March 2020 which drew money from salaries of public workers who make over $1,800 monthly, invested over $711 million (or 1.3 percent of GDP) over the course of the health emergency, the Economy Ministry announced in February 2021. The government previously announced in January that social spending in 2020 amounted to $385 million, $117 million more than in 2019.
      • In February 2021's update, the Economy Ministry noted that $690 million were distributed in loans, 55 percent of that to micro-businesses, 30 percent to small ones, and 40 percent to medium businesses. 
      • On December 3, the government extended unemployment benefits through March 31, 2021, adding a monthly benefit of $118 for three months after someone returns to the workforce.
      • As an incentive for businesses to reintegrate employees, the Social Welfare Bank of Uruguay contributed $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 flexibilized credit loan payments for those who cannot pay, and the Mortgage Bank of Uruguay delayed 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 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. 
    Venezuela

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    Government response

    Economic impact and measures

    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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