Nine out of ten businesses in Latin America are forecasting a significant decline in revenue, as the COVID-19 pandemic has thrown the region’s economy into disarray.
Many of them are trying to reinvent themselves as the changes brought about by the pandemic has left them outmoded, according to a survey by Marsh & McLennan, a global risk management firm, reported by Spanish news outlet America Economia.
In the survey, 50% of the respondents said they expect a revenue decline of between 15% and 25%, while 10% expressed confidence that they would not be hurt by the pandemic.
The crisis has hit industries such as tourism, hospitality, manufacturing, and commerce, which together account for 67% of the region’s GDP.
In Argentina, barely 32% of companies have resumed operations even weeks after the country lifted its lengthy lockdown measures. Service sector employees are working from home, but manufacturers are still buying time to work at their full capacity.
With the virus continuing to spread like a wildfire, major economies of the region are showing signs of slipping back into recession. The pandemic will increase the region’s unemployment rate to 10%, pushing millions of people into poverty, according to the Economic Commission for Latin America and the Caribbean.
The risk management firm says the region would begin recovering from the crisis from early 2021 onward but warns that the recovery would vary from country to country.
Marsh & McLennan claims it surveyed executives representing 534 companies in 11 countries across the region.