Americas Economy

Mexico: COVID-19 Could Cost 1 Million Jobs, says President

Andres Manuel Lopez Obrador, Mexican President

Mexican President Andres Manuel Lopez Obrador has said that the novel coronavirus could cost the country one million jobs as many industries remain shut.

“My prediction is that with coronavirus, a million jobs will be lost,” Lopez Obrador said in a televised speech on Sunday. “But we will create two million new jobs.”

The job loss number matches the estimate by the country’s business coordinating council, reports Reuters.

The Mexican economy which was already in recession before the pandemic.  In April, the finance ministry said in an annual economic report used to guide the budget that the economy could contract by as much as 3.9 per cent this year, adding that the numbers incorporated a “drastic” impact from coronavirus.

Many investment banks forecast a contraction of about 9.0 per cent for this year with only a gradual recovery next year.

Earlier this week, Obrador’s government issued guidelines for restarting operations in the car-making, mining, and construction sectors of Latin America’s second-largest economy. 

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