Mexico: 2020 Article IV Consultation-Press Release; and Staff Report

November 4, 2020

Preview Citation

Format: Chicago

Mexico: 2020 Article IV Consultation-Press Release; and Staff Report, (USA: International Monetary Fund, 2020) accessed December 22, 2024

Summary

Covid-19 has exacted a tragic human, social, and economic toll on Mexico. Over 85,000 lives were lost; unofficial estimates are notably higher. Of 12 million workers that lost their jobs, most of whom came from the informal sector with a limited safety net, over 4 million remain out of the workforce. The working poverty rate jumped to 48 percent. After a historic drop in output, there has been a trade-led bounce in manufacturing. But domestic demand is weak, as is services activity that employs most of the workforce. Staff projects the economy to shrink by 9 percent this year, followed by a gradual recovery. It could take years for employment and incomes to return to pre-crisis levels, compounding the long-standing challenge of achieving strong and inclusive growth.

Subject: Banking, COVID-19, Credit, Expenditure, Health, Inflation, Money, Prices, Public debt, Public investment spending

Keywords: Central bank, CFT effort, COVID-19, CR, Credit, Global, Gross domestic product, Inflation, ISCR, Labor market informality, Largely not observed, Liability positions vis-à-vis nonresident, Market liquidity, Monetary policy, North America, Private sector, Public investment spending, Swap line

Publication Details

Pages:

88
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2020/293
Stock No:

1MEXEA2020001
ISBN:

9781513560243
ISSN:

1934-7685

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