Uncertain outlook for Mexican economy in 2021

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Uncertain outlook for Mexican economy in 2021

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29 January 2021

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Mexico, Jan 29 (Prensa Latina) Mexico's economy will continue to face an uncertain outlook mainly related to the evolution of the Covid-19 pandemic, both globally and nationally, according to the Bank of Mexico (BdeM).

It noted that all will depend on the duration of new restrictions, the evolution of the demand of different goods and services and the administration of vaccines against the disease.

The BdeM circulated a document on the 2021 Monetary Policy, in which it anticipated that the economy will continue to recover gradually, but it warned that there are important challenges for that, especially due to internal weakness and that of the labor market.

Therefore, it estimated that making econonomic adjustments is necessary reactivate production and employment through flexibility in the allocation of resources and ensuring efficient microeconomic functioning.

It also highlighted that working must continue to solve institutional and structural problems that have caused low investment and productivity levels.

the BdeM added that the endeavor to strengthen the rule of law, taking down corruption and fighting insecurity, must continue as well.

All these will result in a greater economic dynamism, which will allow creating better development opportunities and greater wellbeing for the entire population.

The bank pointed out that the economic policy, including the monetary and fiscal spheres, still faces, in a short term, the challenge of taking actions that contribute to achieve a widespread and sustained recovery of the economy and the labor market.