April 3, 2020
1. General Health Council declares health emergency
Health Secretary Jorge Alcocer Varela announced on Tuesday, March 31st a resolution by which the General Health Council declared a health emergency due to the SARS-CoV-2 virus epidemic.
The declaration of a health emergency includes among prevention measures: the suspension of non-essential activities in the public, social and private sectors until April 30th, voluntary home isolation, and the strengthening of existing social distancing measures. So far, the government figures accounts for 1,510 positive cases, 50 deaths and 4,653 suspected cases.
El Universal: México, en emergencia sanitaria por Covid-19
2. Ministry of Finance and Public Credit forecasts fiscal deficit due to Covid-19
The Ministry of Finance and Public Credit presented the “General Economic Policy”, a document with macroeconomic estimates for budget planning, in which they foresee a fiscal deficit of -0.4%, equivalent to MXN $85.5 billion (USD $3.4 billion), due to the Covid-19 pandemic. The estimated deficit breaks the shift of 3 consecutive years with a primary surplus.
In the context of the SARS-CoV-2 virus pandemic and calls for a tax agreement from business chambers, including the 12-month deferment of the 2019 fiscal year statement, President Andrés Manuel López Obrador reiterated that tax will not be waived and income tax will not be reduced, as it would result in less revenue and fewer resources for social programs.
3. Amid coronavirus crisis, foreign capital divests USD $6.03 billion
Amid the economic crisis caused by the coronavirus, foreigners have begun to withdraw their investments from the country. Figures from Banco de México reported that government debt in the hands of foreign investors accumulated to MXN $2.64 billion (USD $106.3 million) in March 19, the lowest such figure since December 5 of last year.
The loss of investor confidence is reflected in the withdrawal of more than MXN $150 billion (USD $6.03 billion) of the MXN $2.214 trillion (USD $89.06 billion) they had on February 21st, their highest level of the year. In particular, foreigners took out their investments in Treasury Certificates (Cetes), considered the easiest instruments to exchange for money.
El Universal: Por coronacrisis, foráneos sacan 150 mmdp de México
4. Mexican oil mix accumulates losses
According to data from the Bank of Mexico and the Ministry of the Economy, the price of the Mexican oil mixture collapsed in the first quarter of the year by 80.83%, closing on April 1st at USD $10.61 per barrel.
The fall in the Mexican mix is in line with the behavior of the world market that has reported a sharp drop in demand for oil and the oversupply caused by the oil price war between Russia and Saudi Arabia.
5. INE postpones local elections of Coahuila and Hidalgo
The General Council of the National Electoral Institute (INE) met virtually during the health emergency declared by the Covid-19 pandemic. During this historic session the General Council of the institute in charge of elections, decided to postpone local elections of the states of Coahuila and Hidalgo in June to July or August.
The President Counselor of the Institute explained that “due to the material impossibility of organizing the elections, it was decided to protect the right to the health of citizens and postpone the elections until the necessary conditions exist.”