Swift action will mitigate the disastrous effects of COVID-19 on the Mexican economy 

Banxico launched an economic program to help small and medium-sized companies

Swift action will mitigate the disastrous effects of COVID-19 on the Mexican economy 
It is essential to act swiftly in the face of the economic crisis caused by social isolation and the halting of activities to contain the spread of COVID-19 - Photo: José Méndez/EFE
English 27/04/2020 09:16 Mexico City Editorial Actualizada 09:30
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It is essential to act swiftly in the face of the economic crisis caused by isolation and the halting of activities to contain the spread of COVID-19 will be key for the Mexican economy to recover as soon as possible.

While it took the federal government some time to offer help to companies affected by the halting of economy, the Bank of Mexico announced the launch of an MXN $800,000 million program for the financial sector, which will be allocated to help small and medium-sized companies.

In an interview with EL UNIVERSAL, the Banxico Governor,  Alejandro Díaz de León, acknowledged that it is important not to only announce programs, but to swiftly implement them. 

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For the Bank of Mexico, there is no doubt that families and small and medium-sized companies will need help since the economic recession will affect everyone in 2020. Moreover, since isolation and quarantine will last a few more weeks, families and companies will feel more pressure. 

The actions implemented by Banxico are in line with what other international institutions have done to mitigate the damage caused by COVID-19. These actions look to strengthen the real driving force behind the economy: companies and families.

Mexico must not wait to learn the real size of the blow to the economy. According to official numbers, it has affected hundreds of thousands of jobs. Between March 13 and April 8, 346,000 jobs were lost. March broke the record after 152,000 jobs were lost that month. Now, the Coparmex estimates that 3 million jobs could be lost.

If authorities and companies act swiftly, the economic crisis could be mitigated and prevent a tragic scenario: millions entering poverty in Mexico this year. That is the real challenge. 

Recommended: Mexican economy will contract by 6% in 2020

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