2Q2021 Brought Good News for Mexican FinanceBy Sofía Hanna | Thu, 07/29/2021 - 16:04
This week, several major companies released their 2Q2021 report, including Mexico’s flagship airline Aeroméxico, which reports positive results and new possibilities. The Mexican peso has returned to its usual exchange rate along after concerns of its future value, given the country’s current situation. Finally, Banorte announced the country’s GDP could grow by 1.6 percent quarter-over-quarter during 2Q2021 due to the reopening of economic activities.
Interested in more? Here are the week’s major headlines in Finance!
- Aeroméxico released its 2Q21 report and announced new measures to increase demand and operations, given the gradual recovery of the domestic and international markets. “With this increase in our connectivity, during July we will offer around 600 flights and more than 80,000 seats to the four main cities in the state of Texas: Austin, Dallas-Fort Worth, Houston, and San Antonio,” mentioned José Zapata, Aeroméxico’s Vice President of Sales. The airline will also incorporate 12 new Boeing 737 Max aircraft that will allow Aeroméxico to keep offering the best of services to its customers.
- The Mexican peso returned to its normal exchange rate of MX$20.0150 for each dollar. This marks an appreciation of MX$0.046 and a variation of 0.23 percent. On July 24, the Mexican currency remained below the 20-peso barrier it has been behind since June of last year when it reported an exchange rate of MX$20.67. Even so, this is still far below its pre-pandemic rate of MX$22.67, recorded in August 2020. The issue now is mounting concern over the role the Delta variant will have on the market as countries all over the world report a serious rise in COVID-19 cases caused by this strain. Extrapolations and market projections pose to influence volatile market movements depending on what they foresee.
- Banorte reports that Mexico’s GDP could grow by 1.6 percent quarter-over-quarter during 2Q2021 due to greater dynamism and the reopening of many economic activities. This forecast is influenced by a very favorable base effect, recalling the strong contractions in April-May due to lockdowns, as well as a faltering reactivation in June as part of the reopening. Additionally, there is a marginal boost due to the associated calendar effect of Easter. The unemployment rate is expected to increase from 4.14 percent to 4.29 percent and there is a forecast of improvement in general because of the current epidemiological conditions during the coming months, especially in the service sector.