## Mexico: 2020 Article IV Consultation-Press Release; and Staff Report

_IMF Staff Country Reports, November 4, 2020_

## Source details

**Canonical URL:** [Mexico: 2020 Article IV Consultation-Press Release; and Staff Report](https://www.imf.org/en/publications/cr/issues/2020/11/03/mexico-2020-article-iv-consultation-press-release-and-staff-report-49863)

## Other formats

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## Bibliographic details
- Published: November 4, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513560243.002

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### Key findings
- Covid-19 has exacted a tragic human, social, and economic toll on Mexico.
- Over 85,000 lives were lost; unofficial estimates are notably higher.
- Of 12 million workers that lost their jobs, most of whom came from the informal sector with a limited safety net, over 4 million remain out of the workforce.
- The working poverty rate jumped to 48 percent.
- After a historic drop in output, there has been a trade-led bounce in manufacturing, while domestic demand is weak and services activity (which employs most of the workforce) remains weak.

### Labor market and poverty
- 12 million workers lost their jobs during the Covid-19 shock.
- Over 4 million of those workers remain out of the workforce.
- The working poverty rate increased to 48 percent.
- Job losses were concentrated in the informal sector, where workers typically face a limited safety net.

### Output, sectoral developments, and recovery
- The economy experienced a historic drop in output during the Covid-19 crisis.
- A trade-led bounce has supported manufacturing.
- Domestic demand is weak.
- Services activity, which employs the majority of the workforce, remains weak.
- Recovery in employment and incomes could take years, compounding the long-standing challenge of achieving strong and inclusive growth.

### Projections and outlook
- Staff projects the economy to shrink by 9 percent this year, followed by a gradual recovery.
- Employment and income levels may take years to return to pre-crisis levels.

### Subjects and keywords (as listed)
- Banking, COVID-19, Credit, Expenditure, Health, Inflation, Money, Prices, Public debt, Public investment spending
- central bank, CFT effort, COVID-19, CR, Credit, Global, gross domestic product, Inflation, ISCR, labor market informality, largely not observed, liability positions vis-à-vis nonresident, market liquidity, monetary policy, North America, private sector, Public investment spending, swap line

*International Monetary Fund. Mexico: 2020 Article IV Consultation-Press Release; and Staff Report. November 4, 2020.*

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- **Mexico: staff report excerpt**
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_Source: https://www.imf.org/en/publications/cr/issues/2020/11/03/mexico-2020-article-iv-consultation-press-release-and-staff-report-49863_