Latin America and the Caribbean suffered particularly badly from the Corona pandemic. Many countries tried to provide effective health protection while at the same time not irreversibly damaging the economy. Nevertheless, the economies of many countries collapsed massively and recovered only slowly, with poverty and unemployment increasing. People working in the informal sector were particularly affected by this.
At the same time, the countries had very different preconditions. The economic power in the individual countries is very heterogeneous: Brazil and Mexico are emerging countries that have long since risen to become important global players, Peru and Colombia are emerging states with economic prospects. In addition, there are small and less developed countries such as Honduras, Guatemala and Nicaragua, where a relatively high proportion of people live in poverty and migrate in large numbers towards the USA for lack of prospects at home. In practically all Latin American countries, income and wealth are very unequally distributed.
However, Latin America and the Caribbean are characterised by a high degree of biodiversity and a great variety of species. The evergreen rainforest, unique ecosystems with rare animal and plant species are of global importance for climate protection and biodiversity. In many countries, KfW Development Bank supports governments on behalf of the German Federal Government in protecting and preserving such ecologically valuable areas.
Overall, development cooperation with Latin America reflects the continent's changing role in the world and its diversity. In addition to protecting the environment, climate and tropical forests, renewable energies are promoted, climate-friendly means of transport for the growing cities are financed and the supply of drinking water is supported. KfW's projects help to create more income and employment for people, reduce the social gap and strengthen peace and democracy. KfW Development Bank committed funds of EUR 1.6 billion for the Latin America / Caribbean region in 2021.