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GDP and employment, the worst of AMLO’s second year

The second year of government was the worst in economic matters at least in the last nine decades, given the deep crisis that caused the pandemic, which aggravated the fall in investment and was reflected in the fall in consumption and employment.

For this year, a fall in the Gross Domestic Product (GDP), from 9.3 percent which would be the worst result since 1931.

Experts pointed out that it has been a period full of economic uncertainty, where the rule of law has not been respected.

“A waste of political capital”, as he considered Ernesto O’Farrill, president of the Bursamétrica group, the performance of the two years in the presidency of AMLO.

“The constant violations of the rule of law, and a series of public policies against investment and employment, is what together has generated a lot of uncertainty,” he said, adding that there was poor handling of the pandemic and measures to contain the contagions were late.

Marco Oviedo, chief economist for Latin America at Barclays, classified the current administration as one of great uncertainty on the part of economic policy.

He stressed that “the behavior of the Mexican economy is quite bad, obviously there is the issue of the pandemic, even before it struck in Mexico, the economy had already been falling and with the issue of the airport and the energy reform, then it possibly exacerbated the weakness that was brought ”.

José Luis de la Cruz, director of the Institute for Industrial Development and Economic Growth (IDIC), He criticized that in terms of growth, the government’s expectations have not been met. In addition, he pointed out that the industry already had a decreasing trend and COVID-19 accentuated its decline.

Regarding employment, De la Cruz considered that not giving support to the productive sector It was translated into precariousness and this in an increase in working poverty.

In addition, he indicated that “not having an agreement with the private sector to face the slowdown that began in 2019, and now with the consequences of the coronavirus, are areas of opportunity that the government could correct to have better results.

The director of Citibanamex, Manuel Romo, is concerned that tax incentives have not been included due to COVID-19 to support companies as has been done in other countries, “these tax benefits help”, to cushion and help companies keep operating ”.

For Adrián Otero, CEO of Scotiabank México and vice president of the Association of Banks of Mexico (ABM), in the first two years of AMLO’s administration highlights fiscal discipline.

“We highlight the fiscal discipline with which the government has conducted itself, achieving healthy public finances, and that will undoubtedly be important to maintain to promote the economic recovery of the country ”. In addition, he said, investment must be promoted, so joint work between the government and private initiative will be key.

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