Category Archives: Economy

Mexican economy not 100% dead just yet

Mexico continues to struggle to contain the spread of COVID-19, with over 400,000 accumulated cases and 46,000 deaths.  Mexico City remains at orange, the second highest level of alert under the national traffic light system for establishing economic and mobility restrictions, and the rest of the country’s 32 states are at either red, the highest alert level, or orange.  The level of business activity remains substantially reduced with respect to pre-COVID levels and no significant improvement is foreseeable in the near term. Continue reading Mexican economy not 100% dead just yet

A little investment, a lot of COVID-19

Reported investment into Mexico has dropped way off during the COVID-19 era, but there was a glimmer over the past month.  Following the update on the pandemic situation in Mexico we provide some examples of economic activity:

COVID-19

The spread of COVID-19 remains strong in Mexico however it has stabilized in some parts of the country.  Mexico currently is ranked 11th in the world among countries with the highest number of accumulated confirmed cases.  Local health officials’ methodology for allowing increased economic activity includes factors such as the rate of increase in the number of cases and the level of occupation of hospital beds.  On this basis, in the past week 18 states have advanced from red, the highest level of alert and restriction, to orange, the second highest.  Fourteen states remain at red, or maximum restriction of economic activities.  States at the orange level, including the capital city, may reopen retail businesses and restaurants at a limited level of capacity in stages during the first two weeks of July.  Offices for most businesses remain closed. Continue reading A little investment, a lot of COVID-19

Mexican retail scrambling under COVID-19

Mexico, like most countries, has been hit hard by the COVID-19 global pandemic.  Although the number of confirmed cases in Mexico is still relatively low compared to the United States, the impact of containment measures on the economy has been severe.  With just over one full month of shutdown behind us, financial institutions are already projecting 2020 GDP growth for Mexico in the range of -9% and potentially worse.  Facing this outlook, retailers are scrambling just to stay in business first, and then to plan for an extended period of bleak near to mid-term consumer spending. Continue reading Mexican retail scrambling under COVID-19