Mexico Fights to Save Economic Progress

Only recently, Mexico’s infection rate has increased exponentially . Worldwide there are nearly 18 million Corona Virus cases, with some of the highest numbers in the Western Hemisphere. In addition to the infection rate, the death toll has increased to the third highest in the world, eclipsing UK mortality numbers in July, according to an official July report from the Mexico Secretary of Health. Mexico’s rates exploded in early July, with concentrations around Mexico City, Mexico State, Tabasco and Veracruz among other where over 40 percent of the cases are now located.

In addition to the infection rate, the death toll has increased to the third highest in the world, eclipsing UK mortality numbers in July, according to an official July report . . .

According to a report from the Center for Strategic and International Studies, the current Pandemic now threatens to decimate the tentative gains Mexico has made in recent years and disrupt the delicate financial/trade balance it has sought to create with its northern and southern neighbors. It is important to note that Mexico’s GDP has risen steadily along side its population for the past five years. Analytics group, Focus Economics has slashed its projections its growth projections for Mexico to 3.1 percent, down from 8.5. Mexico was also on course to continue major exports to the US, increasing its market share exponentially year over year.

As the competition between the US and China heats up, and the US continues targeting China’s growing financial, trade and technological influence–it may be a pivot to Mexico may boost an already flagging economy. In seeking to shrink China’s influence, the US has sought to call upon its older colonial-era allies from the past to move operations away from Beijing. The UK is one of the first adherents to this strategy as it moved to ban Chinese 5g telecom giant Huawei from all of its networks by 2027, according to an official July 14, 2020 United Kingdom release.

the current Pandemic now threatens to decimate the tentative gains Mexico has made in recent years and disrupt the delicate financial/trade balance it has sought to create with its northern and southern neighbors.

It is unclear how COVID-19 will effect Mexico’s implementation of its Proyectos Productivos (FAPPA) which focuses on providing equipment, technical advice, supplies and infrastructure for small farmers.  Developing economies like Mexico may need to re-invent old programs to fit new realities and a new geopolitical landscape where shifting alliances and power strongholds may create new dynamics that impact trade and internal growth.

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