During July the third wave of COVID-19 infections has accelerated in Mexico and the level of restrictions on mobility and business activities has increased. One state returned to red, the highest level on the epidemiological traffic light system, and the number of states at the second highest level, orange, jumped from one to five. The alert level in Mexico City continues to rise, going from green to yellow to orange since early June. Nonetheless, the Health Ministry (Secretaría de Salud) has expressed reluctance to place strict restrictions on business and mobility in order to allow the economy to function.
ECONOMY AND INDUSTRY
- Mexico’s exports of auto parts grew by an annualized rate of 22.5% through the first four months of this year, according to Economy Ministry data. Industry analysts cited increased regional content requirements under the new USMCA trade agreement as boosting exports to the United States and Canada. (El Financiero, July 19, 2021)
- Same-store retail sales in June rose 14.4% with respect to the same month last year, the National Retailers Association (ANTAD) reported. Monthly year-on-year retail sales data continue to reflect the impact of store closings in 2020 due to the COVID-19 pandemic. (Citibanamex Reporte Económico Diario, July 13, 2021)
- In May, a record number of visitors from the United States arrived by air in Mexico, according to the Anahuac Tourism Research Center (Cicotur). The 970,000 air passengers from the U.S. during the month exceeds the number for the same month in 2019, before the start of the COVID-19 pandemic. (Reforma, July 6, 2021)
Continue reading Recent and upcoming investment in Mexico
Mexico City returned to red last month on the epidemiological traffic light system, indicating saturation of hospital beds and the highest degree of restrictions on business activity and movement. The rate of increase in cases of COVID-19 is uneven across the country’s 32 states however overall the spread of the virus continues to increase rather than to decrease. Despite this, many coastal tourism zones remain in operation and received a substantial number of visitors from within Mexico as well as from the United States during the year-end holiday period. Mexico has begun to receive and distribute the U.S.-developed Pfizer-BioNTech vaccine, and plans to begin importing the Chinese CanSino vaccine in January. Continue reading Slow December as restrictions tighten
After five months of restrictions on mobility and economic activity, in addition to measures to inhibit contagion, Mexico remains in the grip of the COVID-19 pandemic. Some signs of optimism are emerging nonetheless. Among Mexico’s 32 states, 10 have now been classified as yellow under the national traffic-light system governing the severity of restrictions, with yellow being the least strict before returning to green, or no restrictions. The other 22 states, including Mexico City, remain at orange, which imposes significant barriers to full economic activity. The national rate of new cases per day has declined slightly over the second half of August. The impact on employment and industry, however continues to be severe with Mexico on track to register its steepest drop in GDP growth in decades. Continue reading August brings scandal to distract from COVID woes