Widely known for its prominent beverage industry majorly comprising the production of tequila and soda; Mexico accounts for a major share in the economy of Latin America. Talking specifically about the Mexican economy, it prominently draws out the revenue from the energy, healthcare, aviation, manufacturing, travel and tourism retail and e-commerce industries. According to the International Monetary Fund (IMF), the country is the 2nd largest economy of the Latin America region having GDP of $1.3 trillion ( as recorded in 2019, a modest GDP growth rate of 1.1%).
However, the turmoil coronavirus has created all over the globe has evidently affected the nation’s economy as well. Most importantly, the country draws out a substantial economic share via tourism and the pandemic’s strike on aviation, and travel and tourism sectors has created the havoc for the country. The cruise ship industry was also greatly affected by this epidemic. This could be clearly seen in the following stats given by the National Tourism Business Council (CNET) :
- The tourism vertical provides annual employment to 4 million people across the country.
- The outbreak of coronavirus has led to the shutdown of approximately 2,000 restaurants and 4,000 hotels with 52,000 rooms.
- The aviation industry suffered a loss of approximately $1.3 billion due to the grounding of airplanes caused by Mexico’s COVID-19.
The first ever case of coronavirus in Mexico was reported at the end of February 2020. Reaching the initial of April, the COVID-19 epidemic has already killed nearly 175 people and recorded 3,200 new cases. The occurrence of COVID-19 led to a major slowdown in exports affected by all major economies. Mexico is the second largest good supplier in the United States. According to sources, Mexico exported $346 million in products in 2018, which is 10.6% higher than the previous year. In addition, according to the International Organization of Motor Vehicle Manufacturers, Mexico is the 6th largest automaker to produce about 4 million cars in 2019. Due to the Free Trade Agreement, it is one of the most favorable positions for European automakers. Due to the tariff advantage, exporting $25,000 cars to the EU can save up to $4,000. Car exports are expected to increase significantly in 2020 as Europe is greatly affected.
