Sunday, September 7, 2025

GDP falls record 18.9% as coronavirus restrictions ravage Mexico’s economy

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economy

The Mexican economy recorded its worst result ever in the second quarter of the year as coronavirus restrictions forced the closure of nonessential businesses for the majority of the period.

GDP shrank 18.9% between April and June compared to the same period last year, according to preliminary data published by the national statistics agency Inegi on Thursday.

The contraction is more than twice as big as the economy’s previous worst result, an 8.6% slump recorded in the second quarter of 1995.

As disheartening as it is, the second-quarter downturn was not unexpected as nationwide restrictions shut down all nonessential businesses for the entirety of April and May and the government urged citizens to stay at home.

Economists surveyed by Bloomberg had forecast a 19.4% drop in economic activity in the second quarter, while several banks predicted contractions of 18-20%.

Data shows that the industrial sector, including manufacturing, construction and mining, shrank 26% between April and June compared to the same period of 2019 while the services sector, including commercial activity, transportation, financial and media, fell 15.6%.

Output of the primary sector, including agriculture and fishing, declined by a much more modest 0.3% compared to the April-June period of 2019.

The economy-wide second quarter contraction was the fifth consecutive quarterly decline for the Mexican economy, meaning that President López Obrador has only overseen growth in one quarter since he took office in December 2018 promising to boost GDP by an average of 4% during his six-year term.

The 18.9% slump follows a 2.2% annual contraction in the first quarter of 2020. Compared to the January-March period, GDP declined 17.3% in the second quarter, according to preliminary data. Inegi will publish final second-quarter results on August 26.

Referring to the year-over-year decline, Pantheon Macroeconomics economist Andrés Abadía wrote in a note to clients that “this is a horrendous number, but hardly a surprise.”

“The deterioration of the labor market has been severe and the pandemic is far from controlled,” he added.

López Obrador
López Obrador: ‘Our strategy has worked. Now we are recovering.’

Indeed, as the economy sank in the second quarter, unemployment shot up, with more than 12 million formal and informal sector jobs lost in April and May alone, according to the Bank of México.

Central Bank Deputy Governor Jonathan Heath said earlier this month that a wider measure showed that more than 34 million people are in need of work, while as many as 16 million Mexicans may have fallen into extreme poverty between February and May, according to academics.

López Obrador asserted Thursday that the economy had reached its lowest point, telling reporters at his regular news conference that “the worst is behind us.”

“Our strategy has worked. Now we are recovering,” he said.

But Mexico appears likely to record its worst economic result since the Great Depression in 2020, with no end to the coronavirus pandemic in sight. The International Monetary Fund is currently predicting that GDP will decline 10.5% while some analysts are even more pessimistic.

Carlos Serrano, chief economist at BBVA in Mexico City, said the bank predicts that “it will take until the end of 2024 to get back to the level of GDP we had at the end of 2019,” while Alberto Ramos at Goldman Sachs said “we certainly do not share the optimism of a V-shaped recovery, particularly given the conservative/hawkish monetary stance and the timid and poorly targeted fiscal stimulus.”

López Obrador has refused to increase public debt to support the economy amid the coronavirus crisis, telling large companies that they should bail themselves out if they encounter choppy economic waters.

Loans have been offered to small businesses but they are so insignificant – 25,000 pesos or about US $1,100 – that many haven’t even bothered to apply.

Exports recovered strongly in June, surging 75.6% compared to the previous month, but are still below pre-pandemic levels.

Mexico recorded its biggest ever trade surplus last month but that result was helped by a 22% annual decline in imports due to a weak, coronavirus-battered domestic economy.

Complicating the chances of a recovery in the second half of the year is that coronavirus cases and deaths continue to mount at a steady pace, with 408,449 of the former and 45,361 of the latter as of Wednesday. The real number of cases and deaths are widely believed to be much higher.

The risk of coronavirus infection is currently “red light” maximum in 18 of Mexico’s 32 states and “orange light” in the other 14, according to the federal government’s “stoplight” map.

Varying levels of economic restrictions apply across the country and the recovery for tourism, one of Mexico’s biggest money earners, is expected to be a long and slow process as many people remain wary of traveling.

Uncertainty and a lack of investor confidence could also hamper any chance of a swift recovery, with changes to energy sector laws of particular concern to many foreign and private companies operating in that sector.

United States Ambassador Christopher Landau said last month that it’s not a good time to invest in Mexico, while Gabriela Siller, head of economic and financial research at Banco Base, said there is a “nearly 90%” chance that the country’s sovereign rating will be downgraded below investment grade by the end of 2020 or early next year.

Source: El Financiero (sp), Bloomberg (en), Financial Times (en) 

Journalist asks for ad dollars and receives diplomatic posting to Turkey

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For journalist Arvide, a hug—and a job—from the president.
For journalist Arvide, a hug—and a job—from the president.

In January, a journalist asked President López Obrador to consider spending government advertising funds with online-only publications such as the Mexican military blog she publishes.

On Tuesday, María Isabel Arvide Limón was named as Mexico’s new consul in Istanbul, Turkey, triggering a barrage of criticism because she has no diplomatic experience.

Exactly how Arvide went from asking the government for advertising money to being appointed by the president to an overseas consul role is unclear, but some people claim she was given the job because she is close to López Obrador.

The Ministry of Foreign Affairs (SRE), which announced her appointment, noted that Arvide has more than 40 years’ experience as a journalist, columnist, analyst and media commentator on political and international issues.

According to the newspaper Reforma, the SRE began the paperwork to appoint Arvide to the diplomatic posting in Turkey’s most populous city the very same month that she asked the government to direct some cash to her military information and army blog.

On January 9, Arvide stood up at the president’s regular news conference and rebuked the federal government for spending advertising money with media outlets that are critical of it. She also questioned why the government was not advertising in online publications.

“Seventy percent of people get information from the internet but who receives official advertising [money] is a weekly magazine called Proceso that you said nobody reads,” Arvide told López Obrador.

“Those of us who have a website, who are on social media and here [at the National Palace] from dawn [to attend the president’s weekday news conference] don’t receive a cent,” she said.

Arvide also asked López Obrador for financial assistance at another press conference, Reforma reported, telling the president that she received no public funds during the administration of his predecessor.

Now, however, she will be on the government payroll while living abroad at the crossroads of Europe and Asia.

News of her appointment to the consul role triggered extensive criticism on social media.

“I want the Foreign Affairs Ministry or [Foreign Affairs Minister] Marcelo Ebrard to explain how a ‘journalist’ such as Isabel Arvide can obtain a consul position if she doesn’t have any diplomatic experience,” Twitter use Dafne Peña tweeted to her 26,000 followers.

Source: Infobae (sp), Reforma (sp) 

In second court appearance, Lozoya pleads innocent to Odebrecht bribery charge

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Lozoya and his mother, Gilda Austin.
Lozoya and his mother, Gilda Austin.

Former Pemex CEO Emilio Lozoya pleaded innocent on Wednesday to a charge that he received multi-million-dollar bribes from the Brazilian construction company Odebrecht.

Appearing before the court for a second consecutive day via video link from a Mexico City hospital where he is receiving treatment for several health problems, Lozoya also reiterated that he is willing to cooperate with authorities in their investigation into corruption during the 2012-18 government led by former president Enrique Peña Nieto.

A federal prosecutor alleged that Lozoya, who headed up the state oil company between 2012 and 2016, received a total of US $10.5 million in bribes from Odebrecht, which has admitted to paying kickbacks in Mexico.

The prosecutor alleged that the former Pemex CEO received a $4-million payment from Odebrecht’s former Mexico director, Luis Alberto de Meneses Weyll, when he was part of Peña Nieto’s 2012 campaign team.

The prosecutor charged that Lozoya met “constantly” with de Meneses and told him that if Peña Nieto won the election, he would be in a position to award infrastructure contracts to Odebrecht.

Odebrecht was subsequently awarded a lucrative contract to complete work on a Pemex refinery in Hidalgo as well as contracts for other infrastructure projects in Veracruz and Tamaulipas.

While Lozoya was Pemex CEO, he received an additional $6.5 million in bribe payments, the prosecutor alleged.

Almost $1.4 million was allegedly transferred to a bank account held by Lozoya’s mother, Gilda Austin de Lozoya, and used to purchase a home in the resort city of Ixtapa, Guerrero. Other funds were allegedly held in secret bank accounts including one in Germany.

The prosecutor also alleged that Lozoya introduced Odebrecht executives to Mexican business owners with a view to them forming partnerships to complete work on government projects.

At today’s hearing, the federal Attorney General’s Office (FGR) formally accused the former Pemex official of involvement in bribery, conducting operations with resources of illicit origin and criminal association.

Lozoya rejected the allegations and said he would denounce those responsible for the crimes.

The Ixtapa home allegedly purchased with bribe money deposited to an account held by Lozoya's mother, Gilda Austin.
The Ixtapa home allegedly purchased with bribe money deposited to an account held by Lozoya’s mother, Gilda Austin.

He reportedly told the FGR before his extradition to Mexico from Spain two weeks ago that the $4-million payment was used to pay foreign consultants that advised Peña Nieto’s campaign and that part of the $6-million payment was used to bribe lawmakers to ensure support for the former government’s energy reform.

Lozoya told the court today that his intention is to collaborate with federal authorities in exchange for a possible reduction in any prison sentence he receives.

His declaration of innocence on Wednesday comes a day after he denied receiving a bribe in excess of $3 million from the president of Altos Hornos de México, a company from which Pemex purchased a rundown fertilizer plant in 2015 at an allegedly vastly inflated price.

“I will prove that I am not responsible for nor guilty of the crimes of which I am accused,” Lozoya said.

The presiding judge ordered him to stand trial on the charge. The FGR has also submitted an application to the court for Lozoya to stand trial on the Odebrecht bribery charges.

President López Obrador said Monday that Lozoya’s appearance in court was a “watershed” moment in his government’s crusade against corruption.

Lozoya was the second high-ranking member of the Peña Nieto government to be taken into custody on corruption charges after former cabinet minister Rosario Robles, who allegedly participated in the embezzlement scheme known as the “Master Fraud.”

Robles remains in preventative custody awaiting trial. Peña Nieto, who has vanished from public life since the end of his presidency in December 2018, does not currently face any charges.

Source: El Economista (sp) 

911 calls reporting domestic violence up 46% in first half of year

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Interior Minister Sánchez addresses Wednesday morning's press conference.
Interior Minister Sánchez addresses Wednesday morning's press conference.

Emergency calls related to domestic violence involving women increased by 45.8% during the first half of 2020, with 600,000 calls made to 911 between January and June, Interior Minister Olga Sánchez Cordero reported at the presidential press conference Wednesday morning.

There were 131,234 calls related to attacks on women, 352,526 to family violence and 118,136 calls were related to spousal abuse.

“The impact of the campaign [against violence against women] launched by the Mexican government is shown in the increase in the number of people attended to by the emergency services,” Sánchez said.

She stressed that the home should be a safe place for women and girls, but that is not always the case. “Unfortunately, in this often violent, patriarchal, male chauvinist system in which we live, which is an ancestral issue, on many occasions there are issues of domestic violence that arise against women, adolescents, boys and girls.”

Changing those behavioral patterns, Sánchez said, needs to come over time and through education. “We have to re-educate so that it does not happen so often,” she said.

The National Institute for Social Development has spent 554 million pesos (US $25.2 million) on programs such as emergency shelters, she said, and more than 100,000 women and children have sought refuge in such centers. 

The Ministry of Citizen Security has trained 482 state and municipal police officers in protocols relating to responding to cases of possible domestic violence and the respect of basic human rights.

Sánchez’s comments came shortly after President López Obrador assured citizens that Mexico is doing all it can to promote gender equality.

“We are carrying out many actions for the benefit of girls, adolescents, and women. I would say that equality is being pursued like never before,” he said, calling the lack of equality for women in Mexico “monstrous,” and claiming it is spawned by corruption.

Source: La Jornada (sp), Informador (sp), Milenio (sp), Forbes (sp), El Imparcial (sp)

Traditional art and its conservation are the focus of Mexico City market

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Armando Hernández sells textiles whose designs have been in his family for generations.
Armando Hernández sells textiles whose designs have been in his family for generations.

I stumbled across Tianguis Artesanal Tenanitla — the oldest tianguis in the city that is dedicated to traditional Mexican arts — over 10 years ago when I was wandering around Mexico City’s San Ángel neighborhood.

Tianguis comes from a Náhuatl word and is used to describe markets that are only open one day a week and for this market, that’s Saturday. The Tenanitla market holds such a fascination for me that whenever I’m going to be in Mexico City — which is fairly often — I make sure I’m there on a Saturday.

The market is located in Plaza Tenanitla, a tiny park just three blocks from Revolucíon, one of Mexico City’s busiest avenues. The two areas are a study in contrasts. While Revolución is a noisy three-lane road, teeming with traffic and lined with modern buildings, this part of San Ángel is tranquil, featuring narrow cobblestone streets, brightly painted colonial-era houses, boutiques, galleries and plenty of restaurants.

According to Lucio Ramírez Villanueva, the tianguis former president and author of a book about it,  the market had its start in the early 1960s when an American named Jim Tillet opened a shop that sold traditional artwork. The store was successful and artists from the city and nearby states soon began setting up their stalls.

It was first known as the Saturday Bazaar but the name changed in 1964 when it was organized into a formal art association. It has continued to operate to this day and Ramírez told me that the market has had one guiding principal since its founding. “We want to continue to preserve traditional arts. The intention is to preserve Mexican customs and traditions.” A stroll through the market shows that it’s been successful.

Garments sold by Agustín Girón and his wife Lucia reflect their Tzotzil Mayan roots.
Garments sold by Agustín Girón and his wife Lucia reflect their Tzotzil Mayan roots.

Early on Saturday mornings Plaza Tenanitla, a tiny sliver of a park, is transformed into a bustling art market. Vendors unload their goods from vans, cars and taxis and begin setting up their stalls. While most artists back in the 1960s were local, artists now come from states as far away as Oaxaca. 

Armando Hernández sells handmade clothing, tablecloths and other items, all bursting with vibrant colors. His father was a founding member of the market and, in fact, many of the artists are the children and even grandchildren of founding members. “All of our products are made by hand,” said Hernández, who travels weekly from Santiago Tianguistenco, México state, a two-hour trek. “We use techniques and traditional designs that have been in our family for generations.” When I asked how many generations, he laughed and said, “Many.”

Agustín Girón Méndez, the market’s current president, and his wife, Lucia, have a stall filled with garments whose designs reflect their Mayan roots; both Augustín and Lucia are Tzotzil Mayas from Tenejapa, a small Mayan village in Mexico’s southernmost state of Chiapas.

“I learned how to make these clothes from my father,” said Girón. “The designs have changed, have evolved a little but it is important to preserve the concept. We believe it is necessary to maintain our language and customs because through our language and art, we are preserving our history.” Many of the designs depict the natural world — faithful renderings of animals and plants — while others are more stylized.

While most of the stalls are located under a tent, some are located outside the front and rear entrances. These include María de Jesús Bernal’s stand, which specializes in miniature designs. “Here you can find everything you would find in a Mexican house, only in miniature,” said Bernal.

A person’s bound to get hungry after perusing the market and there are many options. Guadalupe Ávila Torres has been selling traditional sweets like alegría and oblea de semilla for over 30 years. Her stand is just outside the entrance. And just a few steps away, you can buy delicious, freshly made empanadas that are a must every time I visit. I’m addicted to the mushroom empanadas but am determined to try some others someday.

A bust of John O’Reilly of the San Patricios, a battalion of Irish and other European soldiers who deserted from the US Army after the invasion of Mexico in 1846.
A bust of John O’Reilly of the San Patricios, a battalion of Irish and other European soldiers who deserted from the US Army after the invasion of Mexico in 1846.

More substantial fare can be found in the many nearby restaurants, ranging from the moderately expensive to the downright cheap.

Artists who are not part of the tianguis set up in a couple of nearby parks and even more line the streets. Although the tianguis is only open on Saturdays, artists who sell in those parks are also there on Sundays.

There’s an interesting, although sad, bit of history connecting this part of San Ángel with the United States.

When the U.S. invaded Mexico in 1846, the army was made up of a significant number of European immigrants, especially Irish who faced considerable discrimination both in the army and back in the U.S. Soldiers began deserting soon after arriving in Mexico and some of them joined the Mexican army, including a few hundred who formed the Batallón de San Patricio (the Saint Patrick Brigade).

Although there were a mix of men from several European countries, the majority apparently came from Ireland and were led by John O’Reilly (there are at least three spellings of his surname). The San Patricios fought against the U.S. in several battles, and many, including O’Reilly, were captured at the Battle of Churubusco.

They were court-martialed, and one of the trials took place in San Ángel. Those who deserted after the war was declared — 50 in all— were hanged; 16 in San Jacinto Park in San Ángel and the rest in other locations. Those who deserted before the declaration of war, including O’Reilly, received 50 lashes and were branded with the letter “D” (for “deserter”) on one cheek. O’Reilly, as the leader, received two “D’s.” A plaque inscribed with the names of the members of the brigade and a bust of Riley are half a block from the tianguis.

Like most markets in Mexico, Tianguis Artesanal Tenanitla has been closed due to the coronavirus but Girón, the market’s president, was hopeful that it would be open again soon.

Joseph Sorrentino is a regular contributor to Mexico News Daily.

Teddy bears encourage social distancing at Mexico City cafe

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Lunch with a teddy bear in Polanco.
Lunch with a teddy bear in Polanco.

An upscale bakery in Mexico City’s Polanco district is reminding customers about social distancing by seating giant teddy bears at certain tables.

Isabel Méndez of Jaso Bakery says the stuffed animals interspersed throughout the eatery make for a cheerful and friendly way to enforce health protocols that is aligned with Jaso’s menu of croissants, macaroons and other sweet treats in addition to the savory lunch fare it offers.

Instead of placing signs on unavailable tables, “we decided to place the bears so the healthy distance was not so ugly,” Méndez explained, adding that customers actually enjoy eating among giant stuffed bears. 

Passersby have stopped to take photos, and children often drag their parents inside for a closer look. 

“By far the most beautiful thing I’ve seen in weeks. Thank you @jasobakery for this action, what a good way to encourage a return to shops. Outdoor restaurants are one of the best security measures against Covid-19,” read one of the comments posted to the bakery’s Instagram page, where photos of the large bears posed with a glass of wine or in front of a plate of pancakes abound.

Jaso Bakery's bears are a popular attraction.
Jaso Bakery’s bears are a popular attraction.

The practice is similar to what other dining establishments are doing around the globe as they search for friendly ways to ensure health protocols are adhered to. 

The three-Michelin-starred Inn at Little Washington in Virginia has placed elegantly dressed, mid-century mannequins at tables that otherwise need to remain empty, and around Paris, several cafes and theaters have used stuffed animals to help clients respect social distance measures. 

At Jaso, some clients are as much attracted to the bears as they are the food. “I came for the bears. I still have the one from my childhood more than 70 years ago,” a client said. Another bakery guest commented that “the bears make the place not look so sad and are useful to respect the distance. An excellent decision.”

Although the life-sized teddy bears may be for sale in the future, the bakery says, for now they are there to put smiles on Jaso’s customers’ faces and serve as a plush, pandemic protocol distraction.

Source: Excélsior (sp), La Razón (sp), La Nación (sp)

Attending musical events is something that happened in another world

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A dancer zapateando in Veracruz. It's not the same online.
A dancer zapateando in Veracruz. It's not the same online.

There are few things I enjoy doing more than going out with friends to have a beer and listen to live music. Bars, restaurants — even cafes in second-rate malls where they just happen to have given permission to some dude with a guitar to set up shop for half an hour — I love them all, and given the option, I will always show up.

My one exception (at least for the time being) are nightclubs: while I very much enjoy drinking and dancing, I do not enjoy not being able to hear anyone talk, predatory men, or getting to bed after 11:30 p.m. Also, where are you supposed to put your purse while you dance? It’s just a very impractical set-up.

Xalapa’s world-class orchestra is an especially fantastic treat, and as a bonus, I can get all dressed up for it, forgoing my usual uniform of sandals or boots — depending on the weather — for some sexy heels. Tickets aren’t too expensive, and you can hear some really excellent performances; I’ve been moved to tears more than once from the sheer beauty of the music.

I also love seeing pretty much any kind of dance performance as well as plays, though those are usually a toss-up in terms of how well I’ll be able to understand (sometimes the cultural interpretation needed is just as daunting as the linguistic).

I used to take my daughter to Son Jarocho classes every Friday night where she’d learn to zapatear (dance with elaborate foot movements) while she resisted holding a jarana or any other kind of instrument (she’s a bit shy with those things, but I’m sitting back and giving it time — it will happen).

Afterwards we’d stay for the fandango where 20+ artists would fill the air with whimsical music and the weirdly-stiff and loud stomping movements of the kind of dancing that goes along with it. It was often the highlight of my week, especially once I made friends with the other parents and regulars.

All of those outings now seem like they happened in another world. Performances are still happening, but no matter how beautiful they are, they bleed sorrowful longing: apart from each other physically, joined only by split screens in two dimensions. Then of course there’s the economic suffering of those businesses that rely on people showing up not just to eat and drink, but to occupy hotels, get their cars parked somewhere, grab a snack on the street — the list goes on.

What is performance without an audience? We’re hearing about more and more artistic as well as sporting events going on without anyone actually seeing them in real time and space, and it’s hard not to get depressed about it. One striking example from here in Mexico is the exclusively-online status of the Cervantino this year in Guanajuato. Mexicans are especially enthusiastic festival-goers, and the idea of “reveling” alone in our individual houses certainly sounds less than appealing.

People and organizations are getting as creative as they can to the extent they can under the circumstances. I’ll admit there’s something very touching to me about the sudden humility of professional artists suddenly performing in front of a camera lens: purer, distilled versions of their art.

Larger organizations have done their best to keep up as well. The Ayuda Mutua group scheduled an online art event, for example, and the San Miguel film festival is betting on old fashioned drive-in theaters to keep the events going.

Still, it’s hard for me to feel enthusiastic about an online “party,” no matter how good the marketing is for it. Much of what I love about all of these experiences as they’re normally held is enjoying them with other people. It doesnt matter that most of my fellow audience members are strangers. Were just a bunch of people sharing an experience, and its nice.

One art form whose delivery hasn’t changed as a result of the pandemic is writing, as both creating and consuming was already a relatively solitary activity. This has meant, for the most part, that my various writing gigs have been safe. But it’s a solidly introverted activity while I myself am an extrovert.

Before the pandemic, I’d get around this by frequently setting up shop in some cafe just to be physically around other people while I worked, or I might go to a friend’s house and work there. That said, the silence hasn’t been all bad as it’s allowed me to expand into other areas that I likely would not have done otherwise: I’m very excited, for example, to have been published for the first time in Spanish in a local literary magazine (check out Aria for some fantastic, original writing!)

Independence Day will be here soon, and then Day of the Dead, and then Christmas, not to mention my birthday next month (and I am not one of those people who “doesn’t even notice or tell anyone” — I always want a good party with all my friends!). This year, I fear, is a wash for them all.

I know that there are plenty of things that are more important than artistic events happening or not happening, or having an audience or not having an audience. I just miss you guys, and I’d taken for granted the degree to which enjoying things that humans do literally just for the fun of it made me feel human, too.

Sarah DeVries writes from her home in Xalapa, Veracruz.

Supreme Court abortion ruling dashes hopes for decriminalization

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Women demonstrate in favor of abortion in Mexico City.
Women demonstrate in favor of abortion in Mexico City.

The Supreme Court (SCJN) has dashed the hopes of abortion activists who were optimistic that it would deliver a landmark ruling on Wednesday that would pave the way for the decriminalization of abortion across Mexico.

Four of five judges of the court’s first bench voted against upholding an injunction granted in Veracruz that ordered the state Congress to remove articles from the criminal code that stipulate that abortion in the first 12 weeks of pregnancy is illegal.

If the SCJN had upheld the injunction, the decision would have set a precedent that could have led to further court orders instructing state legislatures to legalize first-trimester abortion.

“This ruling could allow us to petition for injunctions or other measures in the rest of the states which have restrictive regulations on abortion,” Rebeca Ramos, a lawyer and director of a Mexico City reproductive rights organization, said before the SCJN handed down its decision.

Mexico City and Oaxaca are the only states that have decriminalized abortion.

Supreme Court Justice Juan Luis González wrote in a briefing presented at today’s hearing that “the total prohibition on interrupting a pregnancy – through criminal classification – is a barrier, which creates discrimination against women in relation to the right to health.”

According to international human rights treaties, the briefing added, “the decisions of a woman during the … first 12 weeks of pregnancy … are part of her private life, not subject to the sanctioning authority of the state.”

However, the other four justices didn’t support González’s position. A a result, hopes that abortion could be legalized across the country in the short term were crushed and the Veracruz Congress will not be required to change the state’s criminal code.

A growing feminist movement in Mexico has intensified calls for greater reproductive rights as well as sterner action against gender-based violence.

But President López Obrador has not shown a lot of interest in addressing the abortion issue or women’s rights more broadly, preferring to focus on his commitment to stamp out corruption.

According to Maricruz Ocampo, a pro-abortion activist in Querétaro who works with victims of sexual violence, Mexico’s political class is still “in cahoots with the Catholic Church.”

However, Ramos, the lawyer, had expressed optimism that the court would rule in favor of the Veracruz injunction.

“The court is getting to the heart of the matter and is now much more forceful in terms of indicating that abortion is a matter of human rights,” she said.

National and international women’s collectives sent a letter with more than 5,000 signatures to the court, urging it support the decriminalization of abortion in Veracruz, while religious groups petitioned the court to take the opposing position.

The 4-1 vote ensured that the latter got their way, meaning that for the time being at least, only women in Mexico City and Oaxaca will be able to access legal abortion services.

Source: Sin Embargo (sp), The Guardian (en), El Financiero (sp) 

CORRECTION: We were minding our p’s and q’s but confused our pros and cons. The term pro-life appeared in the previous version of this story when it should have read pro-choice. Our apologies.

Exports soared 76% in June after 2 months of historic declines

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exports

Mexico’s exports surged 75.6% in June compared to the previous month, the national statistics agency Inegi reported.

Buoyed by the reopening of the United States economy, especially its industrial sector, Mexico’s exports totaled US $31.68 billion last month.

The 75.6% seasonally adjusted increase, a month-over-month record, came after historic declines in exports were recorded in both April and May.

Automotive industry exports soared 534% in June compared to May as the sector resumed activities following the nationwide coronavirus lockdown. Exports of manufactured goods more broadly rose 40.9% while agricultural exports increased 32%.

However, the value of oil exports fell 36% in June compared to May, Ingei said.

The overall strong growth in exports, and a 22% annual decline in imports due to a weak, coronavirus-battered domestic economy, allowed Mexico to post its biggest ever trade surplus in June.

Mexico’s exports were worth $5.55 billion more than its imports in June, Inegi reported. The surplus represents a $9-billion turnaround compared to May when Mexico recorded a $3.52-billion trade deficit.

The May surplus was higher than that predicted by all 11 analysts surveyed by Bloomberg. Their median forecast was a surplus of $1.55 billion.

James Salazar, an analyst at CI Banco, said the June recovery in exports was expected but noted that their value was still below pre-pandemic levels. The value of exports last month was 12.8% lower than in June 2019.

Salazar said the month-over-month increase was largely driven by increased demand in the United States.

Alberto Ramos, chief Latin America economist at Goldman Sachs, predicted that the recovery of demand in the United States will continue to boost Mexican exports, while “imports are expected to remain subdued given the weak domestic demand.”

Andrés Abadía, senior economist at Pantheon Macroeconomics, said the combination of a competitive peso – currently 22 to the US dollar – and growing demand for imports from the United States industrial sector “will support exports in the short term.”

Source: El Financiero (sp) 

Coronavirus has closed an estimated 150,000 small corner stores

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During the first four months of the coronavirus pandemic in Mexico, 150,000 small corner stores had to close permanently, the National Alliance of Small Merchants (Anpec) reports. 

In a video conference, Anpec president Cuauhtémoc Rivera explained that low sales due to stay-at-home measures and reduced income have forced many small businesses to shut their doors for good.

Rivera said small convenience stores have seen a 25% reduction in sales yet the government has not effectively stepped in to help them survive. He estimates that 21% of Mexico’s corner stores have been forced to close.

“We have suffered the ravages of this invisible threat which has severely damaged the country’s economic activity,” Rivera said. “In April alone, 1,144,000 jobs were lost,” he added. “There has been a loss of more than 16 million jobs so far this year, and that has put pressure on consumption.”

Although the government has launched programs offering small loans for businesses, Rivera says it has been insufficient. Around 89% of the businesses he represents have been left with insufficient resources to meet basic expenses such as utilities.

A survey conducted by Anpec, which has 95,000 members, revealed sales are down by an average of 64%, and 80% of shop owners said their customers do not have enough money to stock up on products and are living hand to mouth.

In late April,  the federal government implemented two programs to support small businesses. The first was a program managed by the Mexican Social Security Institute that offered loans of 25,000 pesos (US $1,100). Only 200,000 were issued, falling well short of the government’s goal of aiding 650,000 businesses under the program.

Experts cite two reasons for the lack of enthusiasm in the program, one being the low amount offered, and the other that many businesses were unable to meet the government’s stipulation that they maintain staffing levels during the coronavirus crisis.

The other program, Crédito a la Palabra, or “Word of Honor Loans,” is administered by the Ministry of Economy and is nearing its goal of granting 1 million 25,000-peso loans mostly to informal, small business operators who have registered with the census bureau.

According to Anpec, what small businesses need are attractive, revolving loans and constant lines of credit.

“This policy of supporting small and medium businesses was not successful due to the amount, because 25,000 pesos is not a figure that will get you out of trouble. The level of pressure that businesses have is much higher,” Rivera said.

Source: La Jornada (sp), El Financiero (sp), AM Querétaro (sp), Mi Bolsillo (sp)