• OUTLOOK: The effects of the United States’ massive US $1.9 trillion coronavirus relief package would spillover across the border adding up to one percentage point to Mexico’s GDP growth in 2021, the Organization for Economic Cooperation and Development (OECD) says.
• DEMAND: After suffering its worst contraction in 90 years -with GDP falling 8.5 percent in 2020-, Mexico is now expected to grow 4.5 percent in 2021 according to the OECD’s new forecast. The US rescue package would stimulate the Mexican economy by between half and one percentage point.
• SPILLOVER: “In the United States, strong fiscal support should strengthen demand substantially and enable a stronger recovery from the pandemic, with beneficial spillovers for other economies, particularly Canada and Mexico”, the OECD said in its most recent economic outlook.
• VACCINATION: Mexico’s Finance Minister, Arturo Herrera, predicted Tuesday that economic activity will return to pre-pandemic levels in June when he said 80 million of Mexicans will have gotten at least one shot of the coronavirus vaccine. Yet, Mexico’s vaccination pace remains slow.
