The inauguration of Donald Trump as president of the United States generated uncertainty in Yucatán, especially after the immediate signing of executive orders that will make effective several of his anticipated threats.
And Yucatán has been one of the best-performing economies in Mexico in recent years. In 2019, the entity registered a growth of 1.6%, placing it as the sixth-state economy with the highest increase in the country.
The economy of Yucatán is uncertain since the new government of Donald Trump will affect local companies in several ways. The protectionist and immigration policies that the new US government could implement threaten to reduce this dynamism.
One of the most vulnerable sectors is the export sector, where Yucatán registered sales abroad for 1,055 million dollars in 2019, with a growth of 1.8% compared to the previous year.
However, the imposition of new tariffs by the United States would affect the competitiveness of Yucatecan products, reducing demand and hitting local production.
Furthermore, uncertainty could discourage key investments in industrial and manufacturing sectors.
Tension between the United States and China could also have adverse effects in Yucatán, where Chinese capital has gained ground in recent years.
Companies from this Asian country operate in the region, focusing on sectors such as the manufacturing of LED lighting and construction materials.
Additionally, in 2019 the state government signed a letter of intent with the company Holley Global to develop a 1,000-hectare industrial park in the municipality of Umán, with the aim of attracting more Chinese investments and generating jobs.
However, the implementation of new trade barriers by the United States could discourage these investments, endangering projects such as the industrial park and limiting the economic development of the region. Another worrying factor for local businessmen is the possible decrease in remittances because it is directly related to the consumption of their products since having less currency would impact sales.
TYT Newsroom
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