Treasury Secretary Arturo Herrera said on Tuesday that Mexico will emerge from the COVID-19 pandemic much stronger than many of its Latin American counterparts in terms of macroeconomic and fiscal terms due to the government’s spending and debt decisions.
The Mexican economy slumped by 8.5% in 2020 and tens of thousands of people lost their jobs due to the crisis caused by the Coronavirus, but President Andres Manuel Lopez Obrador has repeatedly emphasized that he will not put the country in debt by bailing out companies or supply. Unemployment benefits.
“We think we’re in a very good position in terms of how to get out of the COVID conditions,” Herrera said during the virtual event AMEXCAP Private Capital Summit.
And the official warned that one of the most complicated aspects for governments over the past year has been determining the new expenditures that the pandemic will require and to what extent they will be covered with the increase in debt, an area in which he defended the administration in which they do so. Local authorities.
“Mexico is one of the Latin American countries that will arrive much stronger than some of our peers in terms of macroeconomic and financial conditions,” he said.
Herrera also highlighted the outlook resulting from the approval of the TMEC North American Trade Agreement, with the United States and Canada, in the mid-2020s.
According to the official, Mexico may benefit from the trade disputes between the United States and China, which opens the door to the possibility of attracting the Latin American country to new investments. “Conditions are right, we have to start actively looking for those investments.”
Mexico’s central bank deputy governor Jonathan Heath estimated Monday that in the first quarter there was zero growth in the domestic economy, after learning that in February GDP fell 5.1% compared to the same month last year. 4% is projected by the INEGI Statistical Institute.