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Recent and upcoming investment in Mexico

COVID-19

Mexico’s COVID-19 indicators have generally improved over the past month.  The number of new cases per day has declined steadily compared to January, and the national rate of hospital bed occupation is down to 40%.  Bed occupation is higher in the Mexico City area at 60%, however this is an improvement over the peaks of 90% reached in January.  Mexico’s vaccination campaign is gaining speed after a poorly executed launch, however the number of vaccinations administered lags behind the average rate of most developed countries. (Data taken from Citibanamex Monitoreo de COVID-19, February 25, 2021)

ECONOMY AND INDUSTRY

  • Retail sales in Mexico contracted 9.3% in 2020 with respect to the previous year, reaching their lowest level since 2014, according to data from the National Statistics Institute (INEGI). The only subsectors posting positive growth were online and catalog sales (52%) and health-related products (6%). (El Economista, February 25, 2021)
  • Mexico’s construction industry was hit hard by the economic slowdown in 2020, contracting 17.5% on the year, according to data from the National Statistics Institute (INEGI). The drop-off is the steepest for the industry since 1995. (Reforma, February 12, 2021)
  • Remittances from abroad to Mexico represented 3.8% of the country’s GDP in 2020, a record high. The total value of remittances to Mexico grew by over 10% last year with respect to the previous year. (El Economista, February 1, 2021)

Continue reading Recent and upcoming investment in Mexico

COVID, investment both up in January

COVID-19

The COVID-19 pandemic continued to lash Mexico in January with no respite in sight.  The number of new cases and deaths reached historic highs during the month, and the country’s level of excess mortality ranked second highest in the world.  Mexico City and 13 other states remain at red on the epidemiological traffic light, signifying the highest level of restriction on economic activity and movement.  Hospital bed occupation in the capital is close to 90%, and only one of Mexico’s 32 states, Campeche, is at the green or lowest level of restrictions.  At this time, both President Andrés Manuel López Obrador and Carlos Slim, Mexico’s wealthiest man, are ill with COVID-19. Continue reading COVID, investment both up in January

August brings scandal to distract from COVID woes

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