July 9, 2021


1. Mexico acknowledges third COVID-19 peak; SHCP denies economic slowdown

Deputy Health Secretary Hugo López-Gatell admitted that the country is going through a third wave of COVID-19, however, he clarified that the increase has been 22% compared to the previous week, and that hospitalizations and deaths have not increased at the same rate.

Arturo Herrera, head of the Finance and Public Credit Ministry (SHCP), indicated that, although a higher number of cases have been recorded, they have not turned into hospitalizations or deaths, so he does not expect a new shutdown of economic activities.

Forbes: Salud reconoce ya la tercera ola de Covid-19 en México.
El Financiero: El secretario de Hacienda, Arturo Herrera, descarta un nuevo cierre de la economía.

2. Mexico and U.S. strengthen political and economic ties

President Andrés Manuel López Obrador received a delegation of U.S. senators, with whom he discussed the USMCA, immigration reform and border economy.

Additionally, within the framework of the USMCA’s first anniversary in effect, U.S. Trade Representative Katherine Tai made a working visit to Mexico, during which she met with Economy Secretary Tatiana Clouthier; Labor and Social Welfare Secretary Luis María Alcalde; Agriculture and Rural Development Secretary Víctor Villalobos; and Foreign Affairs Secretary Marcelo Ebrard. During these meetings, both parties reaffirmed their commitment to taking advantage of the opportunities presented by the USMCA and discussing the challenges of implementation.

Milenio: Reunión con senadores de EU fue cordial y amistosa, dice AMLO.
El Economista: Katherine Tai presenta a Tatiana Clouthier y Víctor Villalobos las preocupaciones comerciales de EU.
El Universal: Refrendan compromiso en acuerdos laborales del T-MEC.

3. President López Obrador receives opposition governors-elect

President Andrés Manuel López Obrador met this week with the governors-elect from opposition parties: María Eugenia Campos, Governor-elect of Chihuahua; Samuel García, Governor-elect of Nuevo León; and Mauricio Kuri, Governor-elect of Querétaro.

During their meetings, the president and the governors-elect reviewed issues related to the fight against poverty, support for road infrastructure, as well as the use of the USMCA for a quicker economic reactivation. Likewise, the president assured that the meetings were held on good terms and that they will work in a coordinated manner for the benefit of the population.

Latin Us: AMLO afirma que “se van a quedar con las ganas de que nos peleemos” con los gobernadores electos de oposición.
Reporte Índigo: AMLO se reúne con primera gobernadora electa de oposición, Maru Campos de Chihuahua.

4. Inflation rises for the fourth straight month

According to the National Consumer Price Index (NCPI) of the National Institute of Statistics and Geography (INEGI), the month of June registered a y/y inflation rate of 5.88%. According to the Bank of Mexico’s estimates, the target figure should be 3%, +/-1 percentage point.

On the other hand, according to the National Producer Price Index (NPPI), which considers oil costs, registered an annual rate of 7.13% during the same month. Analysts believe that the increase in the NPPI was mainly due to the rise in prices of steel, wood and other raw materials.

El Economista: Inflación, cuatro meses fuera de la meta de Banxico.

5. President announces creation of Gas Bienestar to offer fair LP gas prices to consumers

During his morning press conference, President Andrés Manuel López Obrador indicated that, in order to offer fair liquefied petroleum (LP) gas prices to the public, he will order the creation of the state-owned company “Gas Bienestar.” The president acknowledged that he has not been able to fulfil his commitment to avoid price increases of this product, so he is looking for this company to help solve this problem.

The president affirmed that private companies would continue to participate in the market, however, he pointed out that the five largest distributors in the country have raised their costs in order to have high profit margins, which also distribute around 50% of the LP gas in the country.

El Economista: AMLO anuncia la creación de Gas Bienestar para ofrecer precios justos de gas LP al consumidor.