January 7th, 2022


1. States start the year with new taxes

States will strengthen their income in the face of an economic recovery scenario capable of affecting the federal shares they receive. Some states such as Nuevo León or Mexico City will apply taxes with the objective of regulating information technologies and as part of their strategy to combat climate change.

Mexico City approved to charge a 2% use of digital platforms for the food delivery service, a 5% for accommodation and 2% for streaming services. In the case of Nuevo León, new ecological taxes will come into force, specifically for the extraction or use of stone materials.

El Universal: Estados inician el 2022 estrenando impuestos

2. Economic Outlook for 2022

Among the main risks that the national economy will face in 2022 are the possibility of economic growth below 4%, high inflation, monetary tightening, accompanied by the worsening of the pandemic and the effects of the US economy due to the loss of strength in its internal recovery process, after the results of fiscal support have dissipated in the United States.

Janneth Quiroz, deputy director of analysis at Monex, explained that among the essential challenges in macroeconomic matters is that the Gross Domestic Product (GDP) does not reach the expected growth objective, since greater dynamism is related to public finances. The outlook for the credit rating remains negative and will depend on the management of public finances.

El Financiero: México en 2022: Con riesgo de menor crecimiento y de rebaja en nota crediticia

3. State elections in a debating environment

Mexico will hold elections on June 5th, 2022. Aguascalientes, Durango, Hidalgo, Oaxaca, Quintana Roo and Tamaulipas will hold ordinary elections to change their governorship. The registration of candidacies will begin from March 21st, while the campaigns will begin on April 3rd. Last year, President Andrés Manuel López Obrador’s party, Movimiento de Regeneración Nacional (Morena) won 11 of the 15 governorships at stake.

On the other hand, the president of the National Electoral Institute (INE), Lorenzo Córdova, stated that the Attorney General’s Office (FGR) conclude the investigation against the six councilors who voted to temporarily suspend the organization of the revocation of mandate. The INE reported that of the 11.1 million signatures it received to promote the revocation, it identified 1.5 million valid rubrics, which represents 57.3% of those required to call this exercise.

Excélsior: Morena, por la hegemonía de un nuevo régimen; lo que viene para 2022.
El Financiero: Pide Córdova a la FGR cerrar la investigación contra consejeros.
La Razón: Validan más de la mitad de las firmas para revocación.

4. Challenges of the automotive industry

In 2021, the National Institute of Statistics and Geography (INEGI) reported sales of one million 14 thousand 680 vehicles, that is, an increase of 6.8% compared to the 950 thousand 63 units placed during 2020. The Executive President of the Association Mexicana de la Industria Automotriz (AMIA), José Zozaya, stated that the contraction is due to the shortage of semiconductors and the lack of natural gas supply in some regions of the country.

Among the challenges of the industry for 2022 are the increase in prices, the shortage of semiconductors and the lack of inventory that inhibits the sale of vehicles. In addition, given the proposal of President Andrés Manuel López Obrador to regularize used cars from the United States, the associations continue to anticipate a high degree of uncertainty in the coming months.

El Financiero: Desabasto y regularización de autos chocolate golpean a la industria automotriz.

5. Government’s reactions to Omicron variant

The Institute of Social Security and Services for State Workers (ISSSTE) recognized that the country is in the fourth wave of the Covid-19 pandemic due to the increase in cases in recent days. The institute asked the directors of regional hospitals and various family medicine clinics to prepare medical units to cope with an increase in the number of patients.

Mexico maintains the highest number of Covid-19 cases in Latin America. In addition, the country begins the year with 89% of vaccinated population and with states that have reconsidered and avoided going back to school and other public activities. The Omicron variant has a higher transmission speed than the previous variants, but, according to specialists, it will cause a greater number of mild cases.

Excélsior: Toman acciones frente a cuarta ola de covid-19; México roza 300 mil muertes.
El Heraldo de México: En América Latina, México primer lugar con más casos de Ómicron