More than a third of formal employment is generated in sectors such as tourism

34.2% of formal employment and 24.6% of GDP in Latin America and the Caribbean correspond to sectors strongly impacted by the crisis

The social restrictions that have been generated due to the Covid-19 crisis have led to the suspension, in whole or in part, of productive activities. This has had a significant impact on the sectors whose activities imply affluence and physical closeness.

According to the Economic Commission for Latin America and the Caribbean (ECLAC), it is estimated that 34.2% of formal employment and 24.6% of the region’s GDP correspond to sectors heavily affected by the crisis stemming from the pandemic, as is the case with tourism.

Based on the diagnoses of the business chambers of the region, in relation to the situation of MSMEs and the characteristics of the crisis, ECLAC estimates that more than 2.7 million formal companies in the region would close, with a loss of 8.5 million jobs, not including job cuts by companies that will continue to operate.

In the case of Colombia, Confecamaras revealed that 96% of companies had a drop in sales (75% registered a decrease of more than 50%); 82% of formal companies could subsist for only one to two months with their own resources.

“We have seen that companies in the industry, such as Travel Agencies, have registered large falls in their income and problems in sustaining their activities, which has made it difficult for them to comply with tax and financial obligations. We appreciate the support that the National Government has given us from the beginning, but even our sector has not reactivated and more aid is needed, ”said Paula Cortés Calle, executive president of ANATO.