By KELIN DILLON
As Mexico’s economy suffered greatly in 2020 as a consequence of the coronavirus pandemic, analysts are saying the forecast for the country’s economy in 2021 is just as dim.
The nation faced increased rates of unemployment and lowered GDP in 2021 as covid cases surged throughout the nation.
Little positive expectation should be put on Mexico to fare much better in the upcoming calendar year due to the current Mexican government’s distaste for private investment, say analysts.
“The government has created a discourse that seems to be against private initiative and investment,” said Jacobo Rodríguez, director of analysis at BW Capital. “It has to change that discourse so that it encourages businessmen to invest in Mexico.”
Mexican President Andrés Manuel López Obrador’s (AMLO) National Regeneration Movement (Morena) party has the potential to stack congress even more in its favor during upcoming elections in June, which would likely continue limitations on private investment.
“If congress charges even more toward the majority party, it could worsen the lack of trust,” said Luis Gonzalí, co-director of Investments at Franklin Templeton Mexico.
A joint effort between public and private sectors will be necessary to boost Mexico’s economy, said Gonzalí, otherwise, it’s likely investment will remain low and the economy will continue to suffer as a result.
“Given the conditions of distrust and lack of openness in both cases, it is difficult for that not to happen,” he said.
As the world remains in unprecedented times due to the coronavirus pandemic, perhaps there is no better time for Mexico to see such an unorthodox collaboration, as unlikely as it may be.
…Jan. 5, 2021