• RESPONSE: Mexico’s policy response to the coronavirus shock is among the “weakest anywhere in the world”, Swiss bank UBS said today. Several economists and business groups have urged the Mexican government to push a stronger fiscal relief plan amid the crisis.
• SERIES: Following a growing lists of forecasts, UBS predicted that the Mexican economy will contract by 7.6% in 2020 due to several effects including a major drop in the US economy. Several key sectors (tourism, remittances, manufacturing and oil production) are expected to see a hit.
• DEMAND: “More so than any other previous crisis Mexico has been hit by, this is one where global demand will be simultaneously impaired,” the Latin American Economics team at UBS wrote in a report today citing other moments of economic turmoil in 1994 and 1983.
• COMPARISON: On Sunday, the World Bank (WB) said that Mexico’s economy would shrink this year by 6% due to the coronavirus but sees a 2.5% expansion in 2021 assuming a US economy rebound. The International Monetary Fund (IMF) is expected to release its 2020 forecast soon.
