Mexico Passes China in Total Cases

The Ministry of Health reported 371 new deaths from COVID-19 in the last 24 hours, bringing the total to 9,415. There are also 84,627 positive total cases, 3,227 more than in yesterday’s report. The number of suspected cases since the start of the pandemic is 38,846. There are  16, 209 active cases, or those with symptoms in the 14 days.

During today’s briefing it was reported that Mexico keeps rising in the world ranking of countries with COVID-19 and has now surpassed China’s infection total, according to John Hopkins University (JHU) data. Mexico is eighth in total deaths, recording barely 15 cases less than Belgium. Globally, there are over 5.95 million confirmed cases and 364,459 deaths. Also, Minister of Public Education Esteban Moctezuma detailed the back to school plan.

As of Friday, May 29

3,227     new cases (from yesterday)

84,627   confirmed cases nationwide

38,846   under investigation

9,415     deaths

Impact on markets (19.30 hrs)

US Dollar              MX$22.22            (0.24%)

BMV IPC               36,122.73             (-1.06%)

Dow Jones          25,383.11             (-0.06%)

Peso ends historic month

The peso ended May as one of the best performing currencies, and its best record in 25 years as the US dollar finally stabilized in international markets. According to Banxico, the Mexican currency appreciated 7.63 percent during May. In the last trading session of the month the Mexican currency gained 0.24 percent, bringing the exchange rate to MX$22.22 units.

Mexican crude rose 138.96 percent in May

The Mexican crude basket appreciated 138.96 percent in May, going from US$12.50 to US$29.87 per barrel, a US$17.37 gain that marked the best monthly performance since records started. After May was marked by a lower supply of oil and an improvement in world consumption, the Mexican crude accumulated five weeks of consecutive gains and hit its highest price since March 9.

State of Mexico extends contingency 

Given recent reports of more COVID-19 outbreaks, the  State of Mexico will not resume any activity next week, Gov. Alfredo del Mazo said. In a message, he stressed that the state, second place in deaths and cases in the country, is still on a red light and therefore the contingency measures will be extended. “As announced by the Ministry of Health, in the State of Mexico we are still at the red light stage which means that we are still in the stage of maximum risk of contagion and cannot return to activities yet,” Del Mazo said.

Oil revenues plunge 41.2 percent

The federal government's oil sales revenue plummeted 41.2 percent in the January-April period, a drop that is unprecedented in Ministry of Finance (SHCP) records. According to the monthly public finance report, until the end of April the government received MX$157.65 billion of oil income, while in the same period last year it recorded MX$263.41 billion. SHCP records oil revenues since 1990 and the greatest previous drop was in 2009 when it collapsed 34.8 percent in the same months.

Herrera details recovery projections

Mexico’s economic recovery after the COVID-19 crisis will occur in an “asymmetric V”, or not as fast as expected, Minister of Finance (SCHP) Arturo Herrera said. “There will be a very fast recovery, but it will be less rapid than the fall. It will not be a symmetrical V”, he said in a radio interview. Herrera stressed that the USMCA trade treaty will drive certain sectors to open a little earlier to synchronize with US and Canadian based companies to prevent them to look elsewhere.

Tax collection fell 15.3 percent in April

The federal government's tax collection total fell by 15.3 percent in April 2020 compared to the same month last year, totaling MX$273.88 billion, according Ministry of Finance (SHCP). Income Tax (ISR) was the most affected after collapsing by 26.2 percent. This decline occurs in the context of lower economic growth, but also in the postponement of the annual declaration period until June 30.