MARCH 30, 2021 08:44 AM (EDT)
Best’s Special Report: Economic Recovery in Latin America Hinges on Vaccine Rollout, Though Country Risk Issues Remain
|Ann Modica |
Associate Director, Credit Rating Criteria,
Research and Analytics
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Manager, Public Relations
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FOR IMMEDIATE RELEASE
OLDWICK - MARCH 30, 2021 08:44 AM (EDT)
AM Best expects economic activity in Latin America to rebound in 2021 as lockdown restrictions due to the pandemic continue to subside, providing support to the region’s insurance markets.
The Best’s Special Report, “COVID Brings Yet More Challenges to Latin America,” notes that economic growth of 3.6% on average is expected in 2021, following the dismal contraction of 8.1% in 2020. However, the economic outlook for Latin America is muted due to weakened fiscal metrics, rising social and political unrest in several countries and uncertainty surrounding the vaccine rollout and availability. Countries have been able to start vaccinating their populations, but to varying degrees of success. In the short term, economic recovery will depend on countries’ ability to mitigate the effects of the virus until a coherent vaccine strategy can be implemented to avoid further lockdown measures. AM Best considers the major downside risk for Latin America’s economies the likelihood that the region will be slower than average to vaccinate its populations due to limited resources.
The report also highlights how country risk—divided into three main categories: economic, political, and financial system—is evaluated and factored into all AM Best ratings. As part of evaluating country risk, AM Best identifies the various factors within a country that may directly or indirectly affect an insurance company.
Other highlights in the report include:
To access the full copy of this report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=307267 .
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.