LatinNews Daily - 11 September 2020

* International ratings agency Moody’s Investors Service has warned that tax collection across Mexican states will fall between 1%-14% this year as a result of job losses stemming from the economic impact of the coronavirus (Covid-19) pandemic (the latest official figures show unemployment was 5.4% in July). However, Moody’s notes that such a drop will be “manageable considering that federal transfers account for the bulk of their revenues”. More generally the report warns that the “substantial job losses” during the pandemic “will be detrimental to the country's economic growth, productivity and household income, especially considering the country's already small labour force and continued declining trend initiated back in 2018”. Gersan Zurita, a Moody's Senior Vice President and report co-author, said “The loss of formal employment will be more evident in manufacturing and tourism, and will further hurt demand for other consumer-dependent sectors such as housing and consumer durables…While work resumption and the recovery of the US economy will benefit manufacturing, tourism is unlikely to recover until there is an effective vaccine or treatment for the virus that is widely available”.

End of preview - This article contains approximately 187 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

• Subscribe
• Sign up for a one-time, 14-day trial