Mexico Eyes Economic Reopening Starting Mid-May, AMLO Says

(Bloomberg) -- Mexico's president said he's considering May 17 as a possible date to begin reopening the economy after health officials predicted the nation could reach peak contagion this week.

The government is looking at a gradual return for some industries, like autos and tourism, President Andres Manuel Lopez Obrador said in his morning press conference.

At the start of the coronavirus spread in Mexico, Lopez Obrador's administration was hesitant to order strict distancing measures for fear of how it would affect an already fragile economy. Even after dragging his feet before implementing a nationwide lock-down in late March, economists forecast a plunge in gross domestic product of 7.3% this year.

The president has said the economy won't be that badly hit, but he seemed set to usher in a quick return to activity. With Covid-19 cases rising by more than 1,000 per day, it's not clear whether predictions that the peak is near will prove true.

“We're looking at restarting some parts of the country by the 17th of this month and the rest by the end of the month,” he said. “We're also looking at reopening the auto industry, the production of auto parts, because there's a very close link with the supply chains in the U.S. and Canada. We're also not ruling out a gradual reopening of tourist areas.”

Mining and construction are among industries that may reopen soon, he added.

The Mexican government is working with its counterparts in the U.S. and Canada to come up with a plan to reopen the auto industry, the Economy Ministry said in a statement April 24. Until then, it called on the industry and its suppliers to comply with the suspension of activities. Last week, Volkswagen AG said it hoped to restart activities by May 18.

As of Monday, Mexico's confirmed coronavirus cases had risen by 1,434 in one day to 24,905. Deaths stood at 2,271.

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