Mexico’s outlook appears stable as the United States economy continues to sustain the country’s external sector and exports remain strong. Consumer confidence is on the rise and tourist travel is maintaining a positive trend, though a potential third wave could impact economic reopening. To help businesses round out their strategic plans and prepare for uncertainty moving into 2022, we outlined three key developments for you to monitor through the rest of the year. For analyses of the rest of your critical Americas markets, read our latest Americas Market Monitor.
Key Developments
- President Andrés Manuel López Obrador (AMLO) continues to push forward his controversial energy initiatives, aiming to revert the opening of the electricity market. As AMLO’s government has faced several judicial challenges to his policies aiming to grant more market share to Mexico’s state-owned electricity company, CFE, he has pledged he will introduce a constitutional reform in H2 aiming to curtail private investors into the electricity market. Such a proposal will face strong opposition, particularly from Mexico’s private sector.
- Mexico’s vaccination plan continues to improve, but it is unlikely that Mexico will fully vaccinate 80% of the population by the end of the year. By July 15, Mexico had fully vaccinated only 16.1% of its population.
- AMLO’s government announced it will restructure the COVID-19 traffic-light system, effectively ending publication on the week of July 18. Although Mexico has made progress vis-à-vis six months ago, there is concern that a third wave is on the horizon, as cases are increasing. By the week of July 21, Mexico was averaging 10,953 cases daily.
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