Home Economy The COVID crisis impacts 85% of companies in Mexico

The COVID crisis impacts 85% of companies in Mexico

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About 1,873 million companies in the country (85.5%) indicated having suffered some damage due to the coronavirus pandemic, according to data from the third edition of the Survey on the Impact Generated by COVID-19 published by the National Institute of Statistics and Geography (Inegi).

The main impact that the companies had was the decrease in income (73.8%), followed by a decrease in demand (50.2%) and the shortage of inputs (29.2%). In addition, 16.6% applied temporary closures or technical stoppages.

The survey mentions that companies consider that the support policy that is most required to face the pandemic is that related to fiscal support (66.3%), followed by cash transfers (34.1%).

In relation to the expectations of income for the next six months, considering a regular scenario, 28.7% of companies expect an increase in their income.

The information was collected by INEGI from March 1 to 31 of this year.

Despite the impact of the crisis, optimism is perceived in the business sector, because according to the latest survey, 55% of the country’s companies consider that this year they will have favorable growth.

In this sense, the results of the INEGI survey indicate that 28.7% of the companies expect an increase in their income.

97.4% of those surveyed said they had implemented sanitary measures; 3.8% commented that they received support. In this sense, companies consider that what is most required to face the pandemic are fiscal support (66.3%) and cash transfers (34.1%).

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Among the obstacles to having access to credit, five out of 10 companies pointed out the high interest rates first, then the lack of willingness of providers to grant credit (44.5%) and the high risk of not being able to pay off debts (38.2 %).

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