After dramatically impacting developed economies across Asia, Europe, and North America, the COVID-19 pandemic is projected to effect economies across the developing world. Capital Economics has published data stating that economic output in emerging markets will fall by 1.5% this year. This would represent the first decline since records began in 1951. Mexico, the US’s largest trade partner, could suffer an 8% drop, the steepest decline since the Great Depression, according to the Bank of America.
Lockdowns in developing countries could send them into recessions, with industrialized countries taking a heavy economic toll, even if some developing nations manage to avoid large coronavirus infection rates. As one-third of Mexico’s economy depends on exports to the US, its lockdown efforts could also impair Mexico’s economy before the country is hit by the virus. Developing nations also will have a harder time combatting such an economic blow as their economies are less diversified and more reliant on volatile commodities such as tourism and oil.
