Mexico has experienced a steady recovery after the economic turmoil caused by COVID-19. Many of its states have fully reopened and are actively rolling out vaccines. In the early weeks of the pandemic, the Mexican government declared a health emergency; implemented a range of sanitary measures, including travel restrictions, social distancing and school closures; and shut down non-essential activities to slow the spread of the virus.

Mexico Capital Markets Insights – Summer 2021

As of June 7, 2021, 19 of the 32 states in the country have lifted COVID-19 restrictions, allowing for schools to reopen. The other 13 are at different stages with stricter restrictions, but they are working toward reopening fully as more people are vaccinated and positive rates decline.

The Mexican economy contracted by 8.5% in 2020, the largest one-year decline since the 1930s. Although the economy recovered during the third quarter, the country continues to struggle due to an increase in COVID-19 cases in 2021.

The Mexican central bank has improved its outlook on the economy; it is forecasting GDP growth of 6.0% in 2021, up from a previously estimated 4.8% in the prior quarter. The bank also expects inflation to end at 4.8%, up from 3.6% in the prior quarter.

 

Source: Instituto Nacional de Estadistica y Geografia (INEGI)

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