National Small Business Alliance said Tuesday, more than 150 000 mostly small businesses were forced to close in the epidemic. Last week, the government statistics Agency said 92% of businesses of all sizes reported that they did not receive any government support, in April this year, and may be due to the pandemic, according to its recent survey.
According to the United Nations Economic Commission for Latin America and the Caribbean, the Mexican government increased spending to respond to the pandemic the economic impact of just 1. 1%of GDP the lowest in the entire region. At the same time, the government has stuck to its austerity goals, which include reducing the salaries of many government workers.
“The recession by these countries is through a large size more than what the government is doing now,”said Cuauhtémoc Rivera,President of the Small Business Alliance, the count of some 95 000 members.
Rivera’s Union represented shops near corner shop, the tortilla makers, the butcher—who is the most close to the Consumer, many running family businesses out of their homes. They see their clients struggle more and more to buy the essentials of credit and the emergence of emotions exhausted, he said.
Their most recent survey, presented Monday showed that 79%of business owners indicated that their customers did not have enough money to pay for the basic food basket, he said.
“The recession means unemployment, it means despair,”Rivera said. “I was not able to restart the engine.”
But Mexico cheerleader and President Andres Manuel Lopez Obrador, to ensure that the worst has passed.
“I believe we have hit bottom,”Lopez said Friday. “I’ll tell you the worst is at the end of April.” In April of this year, Mexico lost 555,000 jobs in the formal economy, about half of the officially unemployed so far.
However, Lopez noted that often more than half of workers toil in the informal economy, where it is estimated that many times that number have lost their employment.
The chair has been maintained in this important financial support of the enterprises, will only lead to corruption. On the contrary, he provides a $ 1,000 low-interest credit to small businesses, and the credit of some of the workers in the informal sector.
The government’s reply has been moved by the large businesses and small as insufficient.
Lopez, instead of pushing to re-open economy rapidly even as COVID-19 infected and the death toll continues to rise. The government has reported nearly 400 000 confirmed infections and more than 44,000 people were killed, both are considered to be significant undercounts due to lack of extensive testing.
Papamía restaurant, 10 tables for Breakfast and lunch point to provide an affordable set menu selection, usually busy with office workers. However, with most of these offices still close it just so that about 30% of the sales it made prior to the pandemic, said all people Minerva de la Garza González.
It remains open throughout the pandemic, although a few months, it only allows to fill takeout orders. To date, de la Garza has been able to remain open in the savings she had accumulated, but said Monday she was burning by now.
She reduced her employee to pay they know they will not find other place to work—and her landlord so far has let her slide on the rent, but she feels the amount of accumulated debt.
If the sale is not turned on in mid-August, she says she does not believe she will be able to stick to it. She said the government in a difficult situation, but she did not ask what little government help.
“Not because I don’t need or want it,but I think there are others more urgent(need)to me,”she said.
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