LatinNews Daily - 03 August 2020

* The Centro de Estudios Económicos del Sector Privado (CEESP), a Mexican private sector think tank, has warned that unless changes are made to the economic policy pursued by the government led by President Andrés Manuel López Obrador, Mexico’s economy could face negative average GDP growth throughout López Obrador's presidential term (2018-2024). Noting that Mexico’s GDP growth was -0.3% in 2019, and that there has been an even deeper contraction in the first half of 2020 due to the coronavirus (Covid-19) pandemic, the CEESP said that the López Obrador administration must adjust its policies to reverse this decline, by promoting investment and job creation, in order to have any hope of returning to positive growth in the next four years. “If there is no change of course in economic policy that promotes productive employment, then average economic growth at the end of the current sexenio [six-year presidential term] will be practically zero or even negative”, the CEESP claimed. It added that to reverse the effects of the current economic crisis, Mexico will have to create 20m new full-time jobs, “which seems impossible given the low rate of economic growth forecast for the next few years”.

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