Mexico gains 300K new jobs in three months with AMLO’s Marshall Plan

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President Andres Manuel Lopez Obrador (AMLO) announced 200K jobs gained thanks to his Marshal Plan put in place before the pandemic hit on April when 500K jobs were lost in a month. At this moment, Mexico has regained 90K jobs in August, and 120K more jobs in September.

In other words, while the U.S. continues to struggle with its economy and unemployment is up to 70 million, Mexico gained 212K jobs the past two months, and its on its way to recovery, and the federal government expects to gained back all he jobs lost before the pandemic, by the end of 2020.

“I know in order to reinforce this plan we going to subscribe a agreement with the private sector that is going to bring about more job creation” said AMLO

This week, AMLO signed an agreement with the private sector gaining 39 development projects adding to the package of actions taken by the federal government for its National Marshall Plan, designed to bust the economy hurt by Covid-19 in Mexico, and economies worldwide.

AMLO thanked corporations, and all business owners, for not firing employees during the pandemic. AMLO celebrated the great support from Mexico’s private sector, and he rolled-out a second public-private infrastructure investment plan to continue the reactivation of the economy.

 

What is unique about this new deal, it’s the great intrest from the private sector, to work in synergy with the public sector to participate in projects with transparency, and focusing in eradicating corruption in public works.

“Based on the agreement that we have already signed a year ago with the Federal Government, the business coordinating council (Consejo Coordinador Empresarial | CCE) and all of its agencies, and with other the 12 business organizations, we seek to commit ourselves to promoting a series of actions to finance public infrastructure projects where the private sector contribution must be at least 50% of the total cost of the project.” Said Carlos Salazar, CCE’s presidente.

Salazar explained that the private sector will invest $15 billion dollars, in various sectors: communications and transportation, energy, tourism, drinking water, sanitation and the environment. CCE is also seeking to take advantage of the great opportunities provided by the USMC. He explains that Covid-19 has reaffirmed the strategic importance of the integration of production chains in North America.

Furthermore, he explains it’s of utmost importance to work on several development projects and develop competitive national suppliers, strategic alliances, attract direct investment, create improvements in the border crossing, and facilitate the participation of businesses of all sizes.

In addition, Salazar explained that the low participation in Mexico’s exports on the east coast of the United States represents a significant growth opportunity, especially for Mexico’s south-east where the federal government is completing new land and maritime transport communication projects. Some the projects Mr. Salazar talks about are the Mayan Train and Mexico’s version of the Panama canal that connects the Atlantic and Pacific oceans, and its predicted to immediately generate a commerce boom in the east region.

Salazar explains that the CCE will choose and rollout projects based on four phases:

  1. Potencial projects
  2. Analysis phase
  3. Specific Formulation of projects
  4. Approval and execution

Table below shows the list of the most recent projects :

A total of 39 projects of in the sectors of communications, transport, energy, water and environment.  With a total investment of $13.5 billion dollars (297,344 million pesos) .

amlo

Seven projects are already in execution with an investment totaling $1.4 billion (28 thousand millions pesos).

Projects in the month of October totals $14 trillion  dollars (300 thousand millions de pesos).
In slide 2/4 the investment is of $12.4 billion dollars (259,195 million pesos).

5 energy projects 4/4 PPT

One of the key projects is called “Project 30” which consist of the installation cocalizadora with an investment of 2.7 billion (54 mil millones) which is projected to start in by 2021.

Herrera explained, that there are several pancakes of projects that are already initiated since last year, from the first signed  infrastructure plan of 2019, which has generated 191 thousand jobs.

The investment will increase Mexicos GDP by 22%  by 2021, and subsequently a growth of 25% by the beginning of 2022

In AMLO’s press conference this month, the investment plan was presented with Mexicos leading business man. Watch video:

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