By Daina Beth Solomon and Anthony Esposito
MEXICO CITY (Reuters) – Mexican President Andres Manuel Lopez Obrador defended his dealing with of the financial fallout from the coronavirus pandemic on Tuesday, arguing in a significant speech that the economic system has fared higher than a few of its friends.
The pandemic lockdown threw Mexico’s economic system, Latin America’s second largest, into the deepest stoop for the reason that Nice Despair, shrinking 17% within the second quarter.
“The economic system’s contraction, regardless of the worldwide catastrophe, was 10.4% throughout the first half of the 12 months. However regardless of the collapse the injury was smaller than in Italy, Spain, France and the UK,” Lopez Obrador stated in his state of the union deal with from the ornate nationwide palace.
Lopez Obrador has resisted strain to borrow to assist the economic system or bail out firms on the point of collapse, whereas selecting fights with some companies.
“Now we have confronted the pandemic and we’re going to get out of the financial disaster with out taking over further exterior debt and with out allocating public cash to immoral bailouts,” he stated.
In distinction, Brazil’s economic system contracted 9.7% within the second quarter as its authorities launched a spending program to cushion the pandemic’s influence.
Lopez Obrador has forecast that Mexico’s economic system will observe a V-shaped trajectory, which means a pointy stoop adopted by an equally sharp restoration.
Mexico’s central financial institution has warned the economic system might contract by nearly 13% this 12 months.
Some Mexicans really feel let down by the federal government. In entrance of the Nationwide Palace within the capital numerous labor teams protested the federal government’s lack of assist for staff throughout the pandemic.
Flora Aco, an activist from the feminist group Bread and Roses, stated the federal government ought to have provided a “quarantine wage” to tens of millions who work in Mexico’s casual economic system and have been put out of labor by widespread lockdowns.
“They have been left in full instability,” stated Aco, one in all a number of hundred protesters by the Nationwide Palace.
(Reporting by Daine Beth Solomon and Anthony Esposito; Modifying by David Alire Garcia, Andrea Ricci and Leslie Adler)