IMF improves growth estimates to 6.2% – El Financiero

The Mexican economy is recovering from its deepest downturn in decades, spurred by growth in the United States and advances in vaccination, which the International Monetary Fund expects to grow by 6.2% in 2021 and four percent in 2022.

The IMF team acknowledged that the Mexican authorities have maintained external, financial and financial stability, but they also point to situations such as the huge human, social and economic cost.

“There have been more than half a million deaths likely related to COVID-19. Underemployment is still higher than its peak during the global financial crisis; more than 4.5 million more people than before the pandemic are unemployed or underemployed. or available to work.Already high levels of poverty have increased.The report warns that young people face significant learning losses with potentially harmful long-term effects.

The report suggests that this fiscal space that the government has been able to preserve should be used to provide financial support for social assistance, education, health and public investment expenditures. Good design eases the burden on the most vulnerable in society and promotes more inclusive growth. This high initial spending should be accompanied by fiscal reform that is implemented gradually over the medium term as the economy strengthens,” he recommends.

For the international organization, it is positive that manufacturing and exports are already above pre-pandemic levels, services are opening up, and employment is recovering; However, the real income per person It has continued its long divergence from the US and expectations are that it will continue to widen in the future.

Low productivity growth and high poverty remain the main problems for Mexico. Looking to the future, the economy will face new challenges resulting from technological changes and the effects of climate change,” he points out.