Economic turmoil in Mexico mirrored the Covid health tragedy in 2020, as GDP in Latin America’s second-biggest economy fell by 8.5%. However, certain segments of Mexico’s economy offer rays of hope, including its chemical industry, deemed essential by the government because it supplies raw materials to over 30 different sectors.
To fully take advantage of Mexico’s vast domestic potential for growth, and position as a global manufacturing hub for the export market, the country must first iron-out structural issues that have held it back. The AMLO government’s policies, embodied by the issues surrounding Pemex, have resulted in a lack of feedstock for the country’s chemical industry.
Despite the challenges, chemical supply to the pharmaceutical industry, sanitization products and raw materials for healthcare, agricultural products and packaging for the food industry have all remained strong throughout the crisis, and will play a fundamental role in Mexico’s economic growth in 2021, estimated by the World Bank to be in region of 3.7%.