Weekly Report - 23 April 2020 (WR-20-16)

MEXICO: Economic response still fuelling controversy

Mexico’s finance ministry finally tabled a bigger economic package to combat the coronavirus (Covid-19) pandemic on 22 April. It still falls short of the action being taken by other major nations, however, not least because it is unclear how much of the proposed spending is new. It will also be financed by even more stringent austerity measures and cuts elsewhere. And the plan involves no tax relief for companies reeling from the country’s lockdown. A day earlier, the central bank Banco de México (Banxico) announced a major injection of funds into the financial system in an unprecedented measure. But with no fiscal policy to complement this monetary policy, companies might not want to take the risk of applying for the available credit.

End of preview - This article contains approximately 705 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

Intelligence Research Ltd.
167-169 Great Portland Street,
5th floor,
London, W1W 5PF - UK
Phone : +44 (0) 203 695 2790
You may contact us via our online contact form
Copyright © 2022 Intelligence Research Ltd. All rights reserved.