Latin America racing to forestall catastrophe

Latin America is racing to forestall a social and economic catastrophe by closing borders and shutting down schools, businesses and even some industries as recorded coronavirus cases across the region approach 1,000.

Commodity-dependent countries from Mexico to Argentina were already reeling from the oil price crash last week, along with steep currency depreciations and collapsed stock markets where national oil companies often predominate. Chile and Peru, the world's first and second largest copper producers, respectively, are also reeling from a sharp decline in copper prices.

The economy ministry of Brazil, which has the region's most recorded coronavirus cases at some 230, announced today a R147bn ($29.4bn) economic stimulus package. Copper-exporting Chile, which has at least 155 cases, also unveiled stimulus measures.

Latin America is especially vulnerable to the crisis on multiple levels, from fragile public health systems to commodity-dependent treasuries to political unrest.

In a potential harbinger of economic paralysis in the region, Canada's Methanex, the world's largest methanol producer, is idling its plants in Trinidad and southern Chile for an indefinite period in response to a projected drop in manufacturing demand in the second quarter.

Oil refineries across the region are generally still running, even though fuel demand is waning as more people start telecommuting and social gatherings and travel peter out.

Colombia, Peru, Argentina and Chile are among the countries that have banned the entry of foreigners. Lima has imposed a nationwide 15-day lockdown as well. US-sanctioned Venezuela, considered the most vulnerable to a health calamity, has shut down large swathes of the country, including Caracas. Caribbean islands that rely on tourism, such as Jamaica and Martinique, are particularly hard hit relative to their small populations. Jamaica has banned flights from China, Italy, South Korea, Singapore and Iran. It has restricted travel from the UK, limiting arrivals to citizens and people who have residency permits.

Flights from Asia and Europe into the region are winding down or blocked altogether. Argentina is the only Latin American country that has added the US to the list of countries from where international flights are banned. The government has also imposed additional controls on cargo ships at the nation's ports, forbidding anyone who has been in an affected area over the past 14 days to disembark.

Brazil and Mexico are generally resisting tough measures, following crowded pro-government rallies that defy social distancing recommendations.

Latin American Airlines led by Avianca and Latam are facing financial duress after slashing flights.

At the local level, Rio de Janeiro industry chamber Firjan is urging the city government to suspend rules limiting cargo transportation in urban areas in order facilitate distribution of essential supplies.

The Colombian capital of Bogota has expanded bicycle lanes and road closures to discourage residents from riding on crowded buses. Some cities and departments are imposing nighttime curfews and banning gatherings of as few as 10 people to limit contagion. The government announced today sharp cuts in gasoline and diesel prices.