Photo: Google

By KELIN DILLON

Though Mexico’s gross domestic product (GDP) has been rebounding after the economic effects of the covid-19 pandemic, the Center for Economic Studies of the Private Sector (CEESP) said that families in poverty are likely worse off because of it, only widening the country’s large inequality gap.

The CEESP pointed out that many medium- and small-sized businesses were not supported by the government throughout the pandemic, removing the income source and jobs of many people in the process.

“The government’s decision made it clear that when economic recovery comes, many of these smaller companies will no longer exist and they will not have the capital to rebuild,” said CEESP President Juan Ignacio Gil Antón.

“Now, former entrepreneurs will have to seek employment in an economy that does not generate enough jobs. The economic recovery will only benefit those who had enough savings to maintain businesses.”

Since small businesses were thrown to the wayside by the government in favor of supporting larger companies, poverty and inequality are set to increase, salaries will decrease and it will get harder and harder to find a job, said Gil Antón.

As 67.9 percent of Mexicans are employed by medium, small or micro businesses, the government must invest in small entrepreneurship to keep this huge segment of the population afloat.

“Protecting small businesses, small invested assets, protecting the possibility of maintaining those jobs, avoiding the destruction of production capacities and job creation, should have been the government’s purpose in the pandemic,” said Gil Antón.

“Not supporting them will have a serious impact on people’s quality of life and will increase inequality and poverty.”

 

Leave a Reply