Mexico gears up for healthy recovery after pandemic

  • Mexico has lost 1 million formal jobs during the COVID-19 pandemic, and preliminary numbers suggest that economic activity fell 18% to 19% in April, but conditions are conducive for a healthy recovery in the wake of the pandemic, Finance Minister Arturo Herrera said on Wednesday.
  • The recovery will take much longer than it took for the economy to collapse after a lockdown to contain the spread of the coronavirus, but Mexico will carry on with an orderly reopening in the second half of the year, underpinned by some specific motors.
  • In contrast to previous crises, this time around Mexico will be able to rely on a "fairly robust" financial sector with high levels of capitalization, especially among commercial banks. It can also count on the United States-Mexico-Canada Agreement (USMCA), a trade pact that came into effect on July 1, to spur economic growth in coming years.

(Source: Latinfinance)