Productive Sectors Most Affected in the Region of Arica and Parinacota by the COVID-19 Pandemic

Abstract

High inflation rates, deep recessions, currency devaluations and historically low interest rates: all have been frequent phenomena in Latin America and Chile and could reappear permanently if monetary and fiscal policies are not properly managed. Macro and microeconomic stability is never fully assured in any economy, as was dramatically demonstrated in Chile after the 2019 social crisis and, even less so, with the current COVID-19 pandemic, where, despite all efforts, economic stability is still not sufficiently entrenched to quickly exit the crisis (Barra, 2021). Most of the industries or sectors that suffered large declines in Chile are commerce, restaurants, hotels, artistic and cultural services, and transportation companies. Simulations and statistics suggest that the largest negative concentrations are found among entrepreneurs and small businesses. As suggested by the first National COVID-19 Survey, conducted in the Arica and Parinacota region by the Labor Observatory of SENCE (2020), in the context of the health crisis, the “hotel, restaurant and commerce” sectors are the most affected by the pandemic in the region.