T-Mec: a rebound in the economy in the United States would greatly favor Mexico

The Covid pandemic – 19 severely hit the markets and finances of all countries in the world, especially emerging countries. Despite this situation, there are nations that will have a notorious recovery this year unlike others that will take time to lift their economies .

Fitch Ratings announced that Mexico, in its role as a developing economy, will be the emerging country that will benefit the most from the recovery of economic activity in the United States, which has been on the rise since January and which is strongly pushing its neighboring country to its economic improvement.

James McCormack, global director of sovereign ratings of Fitch, in the framework of a forum organized by the rating agency, stated that the integration of Mexico with the United States economy is giving it an advantage over other countries, for what should take advantage of the commercial link they have .

Since the Free Agreement was approved Trade in 1993 and launched in , Mexico and the United States have built close commercial relations where both countries have invested millions of dollars to develop industries of common interest and strengthen the existing supply chain.

Despite the good forecasts, McCormack made it clear that it should not be forgotten that the pandemic is still present, despite the fact that vaccination has accelerated, so that the economic risks in all countries is latent. In addition, the expert said that the economic weakness of Mexico when the pandemic arrived stops its recovery .

According to Fitch Ratings, Mexico is the second partner largest trade in the United States, behind China, which is why the Agreement between Mexico, the United States and Canada (T-MEC) is essential to boost the Mexican economy after the financial blow that the pandemic has represented.

Mexico and the United States have a wide mobility in their border areas where daily there is a loose commercial exchange, which has to do with the great supply chain that both nations share, which represents several million dollars .

During the pandemic, the Banco de México authorities recognized that the Covid – 19 severely affected the cad In the supply chain and, therefore, there was a negative impact on the finances of the countries, Mexico and the United States were not spared from this trend.

Jonathan Heat Economist at the Bank de México stated that there is a strong impact on companies and society.

The shutdown of the economy caused problems in supply chains and generated additional costs to companies that had to adapt to an environment of greater social distancing.

– Jonathan Heath (@JonathanHeath 54) May 27, 2021

Another reason that explains why Mexico has been able to overcome the impact economic growth of the pandemic had to do with the large financial flow that received from remittances financial aid provided by the Biden administration to US citizens.