COVID-19 Contention Measures Can Favor Economic Recovery

Deputy Minister of Finance Gabriel Yorio stated that economic recovery could be viable but only if the pandemic is contained. If that is not the case, people will not have the confidence to consume more and the reactivation period could be longer. The matter was discussed during a virtual meeting with the United Commissions of Finance and Public Credit and Legislative Studies. Yorio stated that for the economy to contract only 8 percent by the end of 2020, as expected, 4Q20 must see a contraction of only 3.5 percent, reports El Financiero.

"If we do not contain the pandemic, keep contagions at bay, if we do not have an adequate vaccine portfolio and an adequate strategy for vaccine deployment, we will not be generating enough confidence in the economy to increase consumption and to maintain the rhythm of recovery we have been noticing so far," said Yorio during the event.

New COVID-19 outbreaks are starting to appear in other countries, which means Mexico could be next. Precautions need to be taken into consideration to know how we will manage the pandemic from today onward to affect the economy the least, said Yorio to El Financiero. According to the newspaper, in 2Q20 there was a 17 percent drop in the economy. However, data from 3Q20 showed a recovery of 12.5 percent against 2Q20, although 8.2 percent down against 3Q19.

According to Yorio in El Financiero, indicators like credit card transactions have shown a recovery of 85 percent in the last months, while exports in August reflected growth at 97 percent of February levels. Yorio emphasized how the new outbreaks in Europe, the US and Mexico indicate how we have to be fiscally prudent and careful in macroeconomic terms.

There is also a vaccine strategy being developed. Yorio stated that a plan is being structured along with four enterprises to allow citizens to get a dose. This will be important because it will generate the confidence the customer needs to engage in the market. Health personnel will receive the vaccine first because they are handling the virus firsthand, followed by the productive and educational sectors as they are essential to reactivate the economy.