However, the 2021 prediction for Mexico is below the 3.7% growth forecast for Latin America and the Caribbean and the 5.4% global forecast. Latest Available Data. The International Monetary Fund called on Mexico to implement short-term fiscal and monetary support to “limit the damage from the pandemic” and secure a faster economic recovery. It said the risks included a possible resurgence of COVID-19 as well as "prolonged disruption in labor markets, renewed global financial volatility, lower oil prices" and adverse growth in key trading partners. The central bank warned last month that the Mexican economy is in danger of shrinking by 12.8 per cent for the whole of 2020 if the pandemic worsens. }}, Economic freedom in the world (interactive map) Read More: AMLO Has a Grand Plan to Transform Mexico, on the Cheap. Mexico is among the world's 15 largest economies and is the second largest economy in Latin America. Up to date economic information worldwide, live quotes for financial products and foreign exchange trading platform. The CPF builds on the analysis of the Systematic Country Diagnostic (SCD) and reflects the views and strategy of the authorities on the way to foster growth and poverty reduction. For the latest forecasts on the economic impacts caused by the coronavirus pandemic, please consult the OECD Economic Outlook Interim Report Coronavirus: the world economy at risk (March 2020) and the IMF's policy tracking platform Policy Responses to COVID-19 for the key economic responses from governments.. Mexico is among the world's 15 largest economies and is … And it really is fun to squish the whole bag into little bits. So much for the positive economic and social change that the July 2018 election of Andres Manuel Lopez Obrador (AMLO) was supposed to bring to Mexico. President Andres Manuel Lopez Obrador has so far refused to implement a more ambitious stimulus program, arguing that he won’t increase Mexico’s debt further to rescue private companies. In 1990, Latin America’s average GDP per capita was a little over a quarter of the United States’ income level, while emerging and developing Asian countries’ GDP per capita was only 5 percent. © Export Entreprises SA, All Rights Reserved. WASHINGTON: Mexico faces a years-long struggle to return to pre-pandemic levels of employment, income and poverty after an expected economic contraction of 9 per cent in 2020, the IMF … Spending priorities include social programs, the creation of the National Guard to fight rising crime and new funds to support PEMEX, whose rating was downgraded by Fitch due to uncertainty around its future strategy and financial stress. He was formerly a deputy director in the International Monetary Fund's Policy Development and Review Department and the chief emerging market economic strategist at Salomon Smith Barney. Similarly, the fund also downgraded its forecasts for the euro zone, with the economy now seen shrinking by 10.2% in 2020. Fund expects Mexico's GDP to shrink 10.5% this year, a sharp drop from its April prediction, At Mexico News Daily we invite you to support our efforts to provide the latest Mexico news, including extensive coronavirus coverage, by, Woman accidentally killed while making video of kidnapping, Red alert issued for Category 4 Hurricane Delta; evacuations under way, Army will build new Tulum airport; completion slated for 2023, San Miguel de Allende named world’s best small city, Puerto Vallarta leads in tourism’s coronavirus recovery, Mexico hopes US, Canadian visitors will reactivate tourism this winter. Data and research help us understand these challenges and set priorities, share knowledge of what works, and measure progress. The views expressed by contributors are their own and not the view of The Hill, By Desmond Lachman, Opinion Contributor The country’s per capita GDP today stands at 34.0 percent of U.S. per capita GDP, compared with 49.0 percent in 1980. A feature story in Spanish is available on the following link: En qué gastan mujeres y hombres sus ingresos económicos. Stocks Jump to More Than Month High; Yields Climb: Markets Wrap, Regeneron Says Trump Test Results May Show Drug’s Antibodies, U.S. Explores Curbs on Ant Group, Tencent Payment Systems, Trump Calls Case a ‘Blessing From God,’ Hails Antibody Treatment, Biden’s Chances of Winning Hit Record 82.8%: FiveThirtyEight. While the Mexican economy was bound to be damaged by the pandemic, there was no good reason other than government incompetence to expect that Mexico’s GDP would drop by almost 19 percent in the second quarter of this year. Inflation has been above target since 2017, however it slowed down to 3.6% in 2019. Source: The country rejects the recommendation to increase taxes on any item, including income, value-added or gasoline. Global data and statistics, research and publications, and topics in poverty and development, *Amounts include IBRD and IDA commitments, Environmental and Social Policies for Projects. Even before the pandemic struck, Mexico’s economy was under performing. The fund recognized that Mexico has sound macroeconomic policy and access to international markets, Yorio said. In this context, progress towards poverty reduction has been moderate. President Andres Manuel Lopez Obrador has refrained from major fiscal stimulus to boost the economy, saying he wants to avoid saddling the country with huge debts. Supporting women, rural finance inclusion, jobs, and poverty reduction in Mexico’s poorest states. Mexico should also consider a review of its monetary policy framework, the IMF officials said. Potato chips can be a worthy (albeit disguised) part of some tasty recipes. Residents of 33 communities in Guerrero have pledged that they will not allow the military to destroy their opium poppy plantations. The International Monetary Fund has recommended that construction of the new oil refinery on the Tabasco coast be postponed. As has been the case for many other emerging market economies, the global pandemic has brought in its wake a perfect economic storm for Mexico. Updates to add central bank comment in fifth-seventh paragraphs. It will be of interest to any serious scholar or student of international political economy, … Source: This has been largely the result of the almost 20 percent decline in the Mexican currency since the start of the year as investors became increasingly unsettled about the direction in the Mexican economy and as the Bank of Mexico has been forced to reduce interest rates. Sign up for The Whole Enchilada, our free daily digest of the latest Mexico news. A more surprising way in which AMLO has helped to deepen Mexico’s pandemic-induced recession has been his reluctance to open the public purse strings to provide support to the ailing economy. Back in 1980, Mexico was the 10th-largest economy, with a nominal GDP of $228.6 billion. The experience of Mexico through this ground-breaking work, is a global public good in terms of knowledge that can be transferred to other regions and countries in the world. The fallout from the coronavirus will be much worse than that of the financial crisis, the IMF says. “Even less so, in the current situation of the Covid-19 recession,” Yorio said. Your safe gateway to international trade. The hi-tech, information and software development sectors are experiencing a real momentum, driven by the quality of the workforce, clusters and low operating costs that favours the creation of call centres. The contents of this site are ©2020 Capitol Hill Publishing Corp., a subsidiary of News Communications, Inc. Mexico Systematic Country Diagnostic (SCD).