The Americas Economy

As the coronavirus pandemic continues to pose multiple challenges for governments, development banks are playing an important role in aiding the recovery in emerging markets.

Earlier this year, Trinidad and Tobago was looking relatively resistant to the worst effects of the coronavirus pandemic. However, given that oil and tourism are two of the main contributors to GDP – with a 45% and 7.6% share, respectively, in 2018 – T&T is beginning to feel the economic pinch. In response, policymakers have deployed a variety of fiscal and monetary policy tools, supported by the country's banks. 

While global investment is expected to fall sharply this year as a result of the coronavirus pandemic, impact investment – the funding of projects that generate a positive social or environmental impact, as well as a financial return – is tipped to hold relatively steady, and could play a key role in the recovery of emerging market economies.

Peru’s response to Covid-19 won the country international plaudits in the early stages of the pandemic, thanks to its extensive testing regime and regional benchmark stimulus package. As countries begin the cautious process of reopening their economies, authorities in Peru are now looking to the mining industry to spearhead recovery.

As governments around the world continue to grapple with the economic and health impacts of the coronavirus pandemic, policymakers in emerging markets have been seeking effective ways to support their informal sectors. In response to the growing crisis, the World Economic Forum (WEF) has called for a 'new deal' aimed at protecting informal workers.

‘Nearshoring’ – whereby companies shift their offshore production capacities closer to home – is experiencing significant growth in Latin America amid the coronavirus pandemic.