Mexican Exports Expected to Recover in 2021: WTOBy Gabriela Mastache | Tue, 04/21/2020 - 10:50
Despite the grim panorama for the Mexican economy, the World Trade Organization (WTO) says that Mexico will be the country that experiences the most rapid recovery in exports in 2021.
According to the WTO, Mexico’s exports to the world will fall by 4.8 percent in 2020. However, for 2021, the WTO expects that Mexico will experience a recovery of the same magnitude. According to the organization, Mexico is the only country that will be able to match the fall and the recovery in 2021. For example, the US is expected to experience a 14.2 percent fall in its exports and a 10 percent recovery. Meanwhile, Canada is expected to experience a 4.7 percent fall in exports and a 3.7 percent recovery in 2021. China, the largest exporter in the world is expected to experience an 8.3 fall in its exports and a 6 percent recovery in 2021.
According to the WTO, the expectative for Mexico is a sign that the country could experience a V-shaped crisis, which means a deep recession followed by a rapid recovery. The WTO expects the North American region to be one that experiences the steepest fall in its exports.
Mexican Peso Still Under Pressure Due to Low Oil Prices
After international oil prices fell, specially the West Texas Intermediate (WTI) mix that was priced in negative terrain yesterday, the price of the US dollar received a boost. The exchange rate stands at MX$24.32, which is 17 cents up from what was registered yesterday. Analysts expect that the Mexican peso will continue to move in the range between the MX$24 and MX$25 in the next weeks.