Economy#ElDatoDeLaSemana: The obvious need for business support

#ElDatoDeLaSemana: The obvious need for business support

(Expansion) – Resurgence from the pandemic ashes has not been as simple for some populations, certain sectors and different countries, as the recovery has taken place under different conditions.

COVID-19 and its relationship with the limitations on economic activity has encouraged sectors such as wholesale trade, manufacturing, and agricultural activities to have already recovered all of their pre-pandemic production, while industries such as hospitality and The restaurant sector, as well as the services in cultural activities, still suffer the ravages of confinements.

In addition, micro, small and medium-sized companies, which are the engine of the Mexican economy, have been less resilient than large companies, simply because of their financial capacity to face the crisis.

Measuring the pulse of companies in the country is a fundamental exercise to focus support and efforts on those who need it most. The apparent feeling that “the worst is over” does not mean that it is too late to allocate resources to recovery.

In this sense, the Survey on the Economic Impact generated by COVID-19 (ECOVID-IE), published by INEGI this week in its third edition, provides very valuable information on the difficulties they have faced, the measures they have adopted within the “new normal”, and the scenarios they envision in the near future.

In the first quarter of 2021, businesses still suffer from the lack of financial support and tax incentives, coupled with financial stress caused by low access to credit. 96 out of 100 companies report not having received any type of aid. Of those that do, 3.1% have received aid from the government, 0.6% from chambers and associations, and 0.1% from another type.

More and more urgently, compared to the two previous editions of the survey, they say they require fiscal support. Cash transfers, deferral of payments to credits or services, or access to new credits have decreased in priority.

The period in which the survey was carried out coincided with the period in which the fiscal year closes and the corresponding tax payments are made. This factor may have been the cause of the increase in perceived need. In any case, the difficulties are also palpable in other areas, for example, in personnel and remuneration.

In the third survey, even more companies reported reductions in their staff, and the reduction of salaries and / or benefits saw a rebound compared to the second edition. Employers still do not have the ability to rehabilitate jobs and salaries.

On a more positive note, today only 9 out of 100 companies are at risk of closing their doors in the short term, as the rest say they can continue operating with the same level of income for three months or more. The risk is reduced depending on the size of the company: micro-businesses face greater danger than large companies if they do not generate more income.

But it is not only about survival, it is about creating jobs and opportunities that drive the growth and development that the country needs. Only 9 out of 100 companies expect to grow their workforce, bad news for the 2.5 million Mexican men and women who are looking for an opportunity to generate income for themselves and their families.

It is not enough to look at macroeconomic indicators, but to listen to the needs of companies to get out of the crisis as soon as possible. Efforts such as ECOVID-IE must be incorporated into the design of public policies that promote the most vulnerable sectors and companies. Only in this way can we speak of a comprehensive recovery of the country’s economy.

Editor’s note: works in records in detail the economic growth of the country. Follow them on, e. The opinions expressed in this column are solely those of the author.

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