• AUSTERITY: Today, the López Obrador Administration announced new austerity measures against the coronavirus shock, including the further cut of the salaries of government employees, the elimination of 10 undersecretary offices, a halt of Christmas bonuses, and freeze most general spending.
• PROJECTS: However, signature projects personally pushed by President Andrés Manuel López Obrador will remain intact. These include the Dos Bocas oil refinery, the Mayan Train, the Santa Lucía Airport, and several cash transfer programs for the elderly and young people.
• CORRUPTION: “We’re going to show that there is another way to face … any type of crisis. As long as corruption is not allowed, courage and principles like humanity are strengthened”, President López Obrador said Wednesday. His government has discarded any kind of fiscal relief.
• GROWTH: Following a series of dire forecasts, financial group BBVA estimated today that GDP contraction in Mexico could reach up to 12% in 2020. The depth of the crisis, however, will depend on the length of confinement, the type of government relief, and the behavior of the US economy.
