The world economy came to a standstill during the second quarter of 2020, when different governments imposed various measures of productive shutdown and social distancing around the world. This caused aggregate demand and supply to grind to a halt, causing the European Union's GDP to fall -6.12%, the G7 -2.10% and Latin America -7.01%.
In the face of the COVID-19 crisis, fiscal and monetary stimulus was expanded in almost all Latin American economies, with the aim of boosting recovery, although not all countries responded immediately.
In Ecuador, Mexico and Paraguay, the implementation of a small economic package was accompanied by increased economic activity. The COVID-19 crisis has shown that the speed of GDP recovery led by foreign trade is faster in the context of falling imports.