The central zone of the country has the slowest economic recovery due to the fact that consumption has been restricted, in part due to the home office.
“The central region has a very high proportion of its productive activity in services and these have been affected by the pandemic,” Alejandrina Salcedo, director of Banxico’s Price Analysis, Regional Economy and Information, said at a press conference this Thursday.
The pandemic, according to the central bank report, has put companies in a difficult situation because people’s consumption patterns have changed.
“Remote work has also complicated very important changes in the way in which consumer demand is given and the central region concentrates an important occupation of activities that can be done remotely, which has implied a decrease in services” Salcedo added.
To achieve economic recovery in this area of the country, control of the pandemic, increased mobility and the flow of supply chains are required, according to the specialist.
Impact of nearshoring on the economy
After the pandemic, companies had to relocate their production plants so that in the event of the closure of seaports or ports, products can continue to reach other countries.
Mexico became relevant in this sense due to its privileged position with the main world power: the United States. Banxico highlighted that through surveys conducted with the business sector, the effect of nearshoring is already perceived in the country.
“Thanks to nearshoring, manufacturing production was 3% higher than it would have been in the absence of nearshoring, according to the opinion of businessmen,” said the Banxico specialist.
In a survey carried out by the bank, it is highlighted that the main attractions of Mexico for companies to relocate their plants are: the proximity to the United States and the level of wages, while the lack of rule of law is one of the main disincentives to invest in the country.