May 8, 2020
1. SARS-CoV-2 cases to reach maximum this weekend
Undersecretary for Health Prevention and Promotion, Hugo López-Gatell, reported that according to estimates, the peak of SARS-CoV-2 contagion is expected to occur on May 8th. Thus far, Mexico has registered 29,616 cases, with 7,802 cases still active and 2,961 deceased.
López-Gatell acknowledged that because the population respected the isolation measures, the contagion curve was flattened, and 74% fewer cases of infected patients occurred than those estimated at the start of the pandemic. The Director of Medical Benefits of the Mexican Social Security Institute, Víctor Borja Aburto, announced that the Hermanos Rodríguez Racetrack is being prepared as an “Expansion Hospital” that will deal with suspected cases of Covid-19.
2. Business Coordinating Council launches proposals for a “National Agreement”
The Business Coordinating Council presented the document “Recommendations for the National Agreement. 68 Ideas for Mexico,” product of a week of discussions involving more than 250 panelists who developed proposals for immediate actions, actions to reopen the economy and medium-and long-term actions to spur growth.
Proposals include deferral in paying taxes, taking advantage of lines of credit with international lenders, reopening the economy, among others. Furthermore, the Business Coordinating Council spoke out against the agreement to guarantee the National Electricity System, issued by the National Energy Control Center, which the council rejected on grounds that it prioritizes fossil fuel production over renewable energy.
3. Private sector experts forecast GDP to drop by 14%
The Bank of Mexico released the results of its Survey on Expectations of Private Sector Economic Specialists. The interviewees forecasted a 14% drop in the economy for the second quarter of 2020 compared to the same period last year.
Additionally, they projected a -7.1% drop in total GDP for 2020, and that the negative economic figures will linger through at least Q1 2021. Respondents forecast that by the end of 2020 the value of the U.S. dollar will end the year at MXN $23.05 and inflation at 2.9%.
El Financiero: Ven caída del PIB de 14% en el segundo trimestre
4. Mexico sees remittance increase despite Covid-19 crisis
Bank of Mexico figures revealed that during March the country recorded a monthly remittances flow of USD $4.016 billion, which represented an increase of 49% over February, as well as being the largest monthly flow in history.
In addition, the average dollar received for the estimated 1.8 million Mexican families receiving remittances rose to USD $378 per month. The cumulative flow of remittances during the first quarter of the year amounted USD $9.293 billion, representing all-time highs – despite the crisis caused by the Covid-19 pandemic.
El Economista: En marzo, remesas por 4,016 mdd, pese a Covid-19
5. Mexico remains largest U.S. trading partner
The U.S. Department of Commerce reported that trade between Mexico and the United States for the first quarter of 2020 declined by 1.9%, or a total of $147.78 billion. Despite the contraction in bilateral trade, Mexico has sat atop the list of the most important U.S. trade partners for 15 months in a row.
According to the figures, Mexico was the destination of 15.2% of total merchandise exports from the United States, while 15.4% of U.S. imports originated in Mexico. The contraction occurred in the context of the crisis caused by SARS-CoV-2, in which entrepreneurs and both countries are increasing calls for economic reopening.
Aristegui Noticias: Baja 1.9% comercio México-EU, pero nuestro país sigue siendo su principal socio