LatinNews Daily - 18 September 2020

* International credit rating agency Moody’s Investors Service has warned that Mexico’s export and tourism-dependent sectors will “remain under economic stress beyond 2021, even as economic growth recovers from a severe downturn in 2020”. It adds that “air traffic will see a prolonged recovery” not nearing levels pre-coronavirus (Covid-19) pandemic levels before 2023, depending on the airline industry. In its report Moody’s foresees “little relief in 2021 for the hard-hit airline, airport, or hotel and lodging sectors”, adding that it expects that Mexico's tourism sector “will not return to pre-pandemic activity until 2023, since a full recovery will depend on consumer comfort with travel, which will probably not occur until effective vaccines and treatments become widely available”. The report also warns that the housing market will not recover to pre-pandemic levels until the end of 2022 due to the drop in demand for private mortgages and housing as a result of the fall in formal employment. However, it expects that sectors that serve consumers, “including packaged food and telecoms, will experience a gradual recovery”.

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