Central America and the pandemic: macroeconomic policy challenges

This article has a twofold purpose: to describe the social and economic situation
in the countries of the Central American subregion prior to the coronavirus disease
(COVID-19) pandemic and to provide a comparative analysis of the macroeconomic
policies introduced by the governments of these countries in response to this health
crisis. As a central part of that analysis, it looks at the main structural policy challenges
for the enhancement of social protection and reactivation of production activity and
employment to be met by these countries during and after the pandemic. The need
for a national compact around a new development agenda is explored, with special
emphasis on external elements that should be coupled with national policies, such
as regional coordination, international cooperation and finance, and a restructuring
of financial and lending institutions.