Because of the coronavirus and falling oil prices, Mexico's economy could shrink by an eye-popping 8 per cent this year.

Any thought of jumping up supply chains in North America to replace trade with China depends on the battered Mexican industrial sector.

Credit rating agencies have already downgraded the Mexico bonds, now just above the junk status.

The coronavirus pandemic is threatening the economic pillars of Mexico - energy production, tourism, and manufacturing.

Tourism accounts for almost 20 per cent of Mexico's GDP, yet its sun-kissed beaches were deserted.

Mexico has nearly 30,000 confirmed coronavirus cases although its actual caseload may be eight times greater.

In Latin America and the Caribbean only the Bahamas spent less on supporting families and businesses during the pandemic as a percentage of their GDP than Mexico did.

Remarkably, narco-traffickers throughout Mexico have filled the void with relief packages.

AMLO gave in to reality on April 22, announcing support for a $26 billion package to bolster the Mexican economy.

Mexico could afford a larger stimulus package, if not for the obstinacy of the president.

The resuscitation of the US economy after the pandemic will largely depend on the renewed productivity of the massive supply chain for North American production.

Mexico seems to be the weak link, largely due to malpractice with AMLO.

A recent letter from the National Association of Manufacturers warns that if Mexico does not move to shore up key industries, the consequences are dire.

Just before the pandemic - and as a result of the trade war with China - Mexico hovered to the position of the number one trading partner of the United States.

At that time, speculation grew that Mexico would be one of the biggest beneficiaries of the manufacturing slide in China.

AMLO's economic team and Mexico's private sector must prevail over their president not to miss the opportunity of a strategic realignment to suppliers literally at the US doorstep away from Chinese manufacturing.

Read the original article "Looking to secure supply chains in North America after the pandemic?

Encourage recovery package for Mexico | American Enterprise Institute - AEI" at https://www.aei.org/foreign-and-defense-policy/want-to-secure-north-american-supply-chains-after-the-pandemic-encourage-mexicos-recovery-package/