Mexico’s Economic Recovery Still Below Pre-Pandemic Levels
By KELIN DILLON
While the first quarter of 2022 presented the most accelerated recovery of the Mexican economy post-Covid-19, the country’s Gross Domestic Product (GDP) still falls below its pre-pandemic levels.
According to the National Institute of Statistics and Geography (Inegi), Mexico’s GDP advanced by one percent throughout 2022’s first quarter, .2 percent above the preceding quarter.
The GDP of the services economy likewise advanced by 1.3 percent over the 1.1 of the previous quarter, while mining, utilities and manufacturing rose by 2.1 percent, 1.7 percent and 1.5 percent respectively. The GDP of sports and entertainment was boosted by 13 percent, while the hospitality and food and beverages industry increased by 5.9 percent, large jumps likely made possible by lessened social distancing restrictions and an international reduction in travel restrictions.
Though the overall GDP, as well as that of several subsectors, has increased in recent quarters, it’s still not as high as Mexico’s GDP pre-pandemic; the current GDP still hovers 2.1 percent below the fourth quarter of 2019, with business support services, waste services, hospitality, food and beverage and sports and entertainment lagging behind the most in recovery.
That’s not to say all sub sectors remain behind; corporate services has grown 12.96 percent since 2019, alongside health and social assistance services with a 7.31 percent boost and wholesale trade with 6.23 percent increase.
Mexican airlines have also experienced recovery recently, topping off a contentious couple of years for Mexican aviation with a marked increase in passengers across national airlines like Volaris, VivaAerobus, and Aeroméxico.
“The Mexican economy may not recover until next year; for now, there are appearing possible hurricanes ahead of a pending scenario where the United States economy enters a recession at the beginning of 2023,” said Ernesto O’Farril, president of Grupo Bursamérica, going on to say that any recovery will likely be short lived due to the Mexican economy’s inherent entertainment with that of the United States.