Queretaro, Qro. The economic recovery after the effects of the Covid-19 pandemic has been slower than expected, impacting the productivity and generation of profits of the member firms of the Querétaro Business Center of the Employers’ Confederation of the Mexican Republic (Coparmex).
The local president of Coparmex, Jorge Camacho Ortega, highlighted that the economic recovery barely began in 2021; however, it is slowing down due to various factors such as inflation, the persistence of the global logistics crisis and the effects of the war between Russia and Ukraine.
Therefore, he stressed that this year only 25% (150) of the 600 member companies of Coparmex in the state will be able to pay profits to their workers.
“The profits of the companies fell a lot, many closed, they got into debt, the recovery is slower than we would like. In 2021, the recovery was just beginning, so very few companies had profits, ”he stressed.
These are around 150 companies representing 1,500 employees who will receive profits. “The sectors that would have the possibility of paying profits are the food, technology development, virtual entertainment, and hydrocarbon sectors; and some from manufacturing such as packaging and logistics”
On the contrary, companies in the construction and education sectors are among the branches that are least able to disburse profits.
In this context, Jorge Camacho highlighted that inflation is one of the great concerns of the Private Initiative, since they estimated that it would drop to 4% at the end of the first quarter of the year, a situation that has been the opposite.
He added that with the behavior that inflation has had in the first quarter of the year, it is likely to approach 8% soon, anticipating that this trend will stabilize at levels of 4% until the middle of next year.
“The inflation curve has remained at these percentages of 7 to 7.5%, we are at 7.7%, it will probably reach 8%, as long as it does not begin to descend, the period to reach those levels of 4% will be prolonged,” said the businessman.
Jorge Camacho said that the price of steel in particular has risen by almost 60% in the last six months, resulting in an increase in the production costs of industries that depend on this type of material.
To this scenario will be added the logistical and commercial impact that could be reflected in the coming weeks due to the closure of the port of Shanghai.