Public and Private Sector Join Forces to Prevent Covid-19 Impact

CEPAL anticipates a profound economic recession for the Latin American region due to the COVID-19 pandemic. While experts believe that in 2020 Mexico will experience an important economic deceleration, they foresee the Mexican economy improving in 2021. Also, Constellation Brands has met with President López Obrador to find common ground for the company to continue its investments in Mexico. Also, March registered important capital exits accounting for US$4.6 billion.

In case you missed it, this is what made the headlines over the week!

• According to CEPAL, the Latin American region is bound to experience strong economic contraction, specially considering that countries in the region were experiencing a weak economic context. In Mexico, institutions like IMEF anticipate a “pandemic recession” for 2020 given the global economic context. Despite the grim economic panorama, the Bank of America expects that in 2021 the Mexican economy will bounce bank with a 4.5 percent growth rate.
• According to IMF, in March 2020, international investors sold their positions in the country accounting to a capital loss of approximately US$4.6 billion. This loss of capital has led to a strengthening of the US dollar, which has placed exchange rates between the Mexican peso and the US dollars at MX$25.
• After several meetings and public statements from the private sector, the government has announced that on Sunday it will present its economic relief plan for the contingency. Moreover, Carlos Salazar announced they are working alongside the government to find tax relief for companies in May and June.
• Company directors from Constellation Brands met with President López Obrador to find a solution after its brewery in Mexicali was cancelled following a public consultation. In one of his daily briefings, President López Obrador mentioned that the government is already working with Constellation Brands on analyzing other places where the company could set up shop.