section_path: Economic impact by continent, region and country/South America
section_name: South America
paragraph_text: South America
  
  Latin American and Caribbean countries were already facing low economic growth before COVID-19, with the region averaging 0.4% of growth in 2019, due to what was described as "a vicious circle of low-quality jobs, deficient social protection and volatile incomes" with one out of five in the ages of 14–25 being unable to find a job. The economic impact caused by COVID-19 was exacerbated by many countries' lack of reserve funds for times of crisis. Between 35 and 50 million people in the region are expected to fall below the poverty line, which is set at US$5.60 per day. Exports have also been affected and many countries are expected to fall further into debt. The LAC region is experiencing the biggest contraction in the emerging markets and developing economies. The IMF World Economic Outlook has reported a GDP contraction of 8.1 per cent in Latin America in 2020. Unfortunately, since 2014, the region has been experiencing the weakest period of growth since 1950.
  
  A World Bank April 2024 report emphasizes the crucial role of competition in stimulating economic growth. The report highlights that in many regions, including Latin America and the Caribbean, high market concentration is a significant issue, with the top 10% of firms controlling about 70% of the market share. This stifles innovation and limits productivity gains necessary for robust economic development. By enhancing competition, the report estimates that consumer welfare could see substantial improvements and firms' productivity might increase by up to 50%. Additionally, this could contribute to an overall economic growth boost of approximately 3-4%.
  
  Furthermore, the report updates on economic forecasts, noting a downward adjustment from an initial growth prediction of 2.3% to 1.6% for the year. It suggests that strategic reforms aimed at promoting fair competition, coupled with investments in infrastructure and education, are crucial for unlocking potential growth and improving economic outcomes. These measures are intended to address structural inefficiencies and ensure a more dynamic market environment conducive to long-term stability and prosperity.
  
  The pandemic caused an increased of the degree of illegal mining in South America. The causes of this is the disruption of precious metal supply caused by anti-Covid measures in legal mines, and increased gold prices and a surge in unemployment.