A Mexican State-level Perspective on Covid-19 and its Economic Fallout

By Juan Pablo Cuesta Aguirre, Swarnali A Hannan

October 13, 2020

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Juan Pablo Cuesta Aguirre, and Swarnali A Hannan. A Mexican State-level Perspective on Covid-19 and its Economic Fallout, (USA: International Monetary Fund, 2020) accessed November 23, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

Mexico has had one of the highest death tolls from Covid-19 and among the largest declines in output compared to peers. This paper utilizes data on Mexico’s thirty-two states to better understand the relationship between health and economic outcomes. For instance, did the states with worse pandemic outcomes suffer more economically? What state-level characteristics impacted health and economic outcomes? Among the findings are: individual traits such as age and certain pre-existing conditions were associated with higher illness and fatality risks. States with higher initial health expenditure and capacity on average had a lower case fatality rate. The economic fallout was widespread well beyond the direct impact of the pandemic. Tourism-heavy states were particularly badly affected, while states with larger exposures to manufacturing exports performed better. These findings support the case for adequate health spending, fiscal lifelines for hard-hit workers and sectors, and further integration into global value chains to bolster economic outcomes and resilience.

Subject: COVID-19, Expenditure, Health, Health care spending, Population and demographics, Public expenditure review

Keywords: Containment measure, Containment measures, Country sample, Covid-19, Differences to health outcome, Economic activity, Global, Health care spending, Health condition, Plots states' tourism-exposure, Pre-existing conditions, Public expenditure review, State characteristic, State Quintana Roo, State-level data, World Health Organization state, WP

Publication Details

Pages:

39
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2020/214
Stock No:

WPIEA2020214
ISBN:

9781513559025
ISSN:

1018-5941

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