July 2, 2021


1. Results after three years of López Obrador’s victory

President López Obrador presented a report in recognition of the third anniversary of his 2018 electoral victory. In the economic sphere, he indicated that the industrial sector is recovering and that the economy will grow around 6%; furthermore, inflation remains stable, and the Bank of Mexico’s interest rate has been reduced by 3.75%.

He pointed out that he does not seek to have “the absolute truth” and that his adversaries will always find respect and freedom. Due to results of a telephone survey, he was pleased that 72.4% of Mexicans agree that he continues in the presidency and that his administration has a rating of 6.7 out of 10. In addition, 43% of those surveyed perceive that corruption in the country is lower during this administration.

El Universal: Minuto a minuto del informe de AMLO, a tres años del triunfo electoral.
Político MX: AMLO presume en su informe que le ganó a la oposición en las elecciones, remesas y no hay carteles nuevos.

2. USMCA attracts more investment, but labor conditions need to be strengthened

One year after the Mexico-U.S.-Canada Agreement (USMCA) entered into force, Mexico has registered investments of USD $10 billion. According to the Economy Secretariat (SE), this positions the agreement as a fundamental piece for the recovery of the Mexican economy. Tatiana Clouthier, head of the SE, indicated that the economy is expected to grow 6.5% in 2021 thanks to a boost from foreign trade.

Luisa María Alcalde, head of Labor and Social Welfare, pointed out that, thanks to the USMCA, the rights of workers are no longer violated, since labor competitiveness is sought. In addition, its implementation seeks to obtain the best working conditions through formality. For its part, the U.S. warned that it would create a labor oversight panel if solutions are not found to resolve workers’ grievances.

Milenio: El T-MEC funciona y atrajo 10 mil mdd de inversión a México en un año.
La Jornada: T-MEC motor de recuperación en América del Norte: Tatiana Clouthier.
El Sol de México: Empresas, sindicatos y trabajadores, principales actores en implementación del T-MEC: STPS.
El Universal: EU advierte que creará panel laboral si México no cumple con compromisos del T-MEC.

3. Mexican peso appreciates due to U.S. labor report; public debt is reduced

After the U.S. published its labor report on Friday, the Mexican peso appreciated, trading at 19.81 units per dollar. This after it had depreciated due to investors having been cautious waiting for the report, as well as concerns that have arisen over the new Delta variant of COVID-19.

Regarding public debt, the Secretariat of Finance and Public Credit (SHCP) published a report titled “Public finances and public debts,” noting that it was reduced to 47.7% of GDP, a figure below the 52.1% recorded at the end of 2020. Likewise, a recovery in oil prices and greater oversight boosted public sector revenues through May.

El Economista: Peso se deprecia ligeramente; mercado espera reporte sobre empleo de EU.
El Financiero: Se disparan 31.8% los ingresos públicos en mayo.
La Jornada: Peso avanza tras sólido reporte del empleo en EU.

4. Lack of social policies leaves 67 million in poverty, but formal employment recovers

The National Council for the Evaluation of Social Development Policy (Coneval) reported that the crisis caused by the pandemic deepened poverty in Mexico, which caused the population in poverty to reach 67 million in March 2021, that is, 14.6 million more than in 2018. In the case of extreme poverty, it practically doubled, passing from 9.3 million at pre-pandemic levels to 18.3 million. These record numbers are due to the lack of a social protection mechanism, such as unemployment insurance.

In contrast, the economic reactivation has allowed 86% of formal companies that had been lost due to the pandemic to recover, mainly in commerce and the construction industry. Most of the companies that recovered have 1 to 5 workers, followed by those with 6 to 50 employees. The Center for Financial Studies and Public Finance hopes that, over time, the number of patterns will revert to pre-pandemic levels.

El Financiero: Reabre 86% de las empresas que cerraron durante la pandemia.
El Universal: Pronostican récord de 67 millones de pobres.

5. Slim will pay for the rehabilitation of Line 12 regardless of the outcome of the investigations

President López Obrador reported that Carlos Slim’s company will pay for the rehabilitation of the section of the Line 12 of the metro and invited other companies involved to do the same. The works are expected to be completed in a year and all expenses will be borne by Grupo Carso, without shifting the burden to Mexican taxpayers. Slim will begin to work with Mexico’s City government and the commission in charge of reviewing Line 12 to start the work.

Mexico City Mayor Claudia Sheinbaum stressed that Slim’s decision is very important, however, the Attorney General’s Office (FGJ) will continue to carry out investigations into the accident. She indicated that the FGJ will have autonomy and that it will be the one to decide whether or not Slim’s accions exempt Grupo Carso from any responsibility regarding the accident.

El Financiero: Slim va a reparar tramo de Línea 12 “sin que le cueste al pueblo”: López Obrador.
La Jornada: Carlos Slim rehabilitará la Línea 12 sin esperar resultado de la indagación.