The economy and public finances of Mexico City in the context of the Pandemic

Abstract

This article analyzes the impact of the pandemic caused by the SARS-CoV2 virus on the performance of the economy of Mexico City, as well as its effects on the main components of the local public treasury (income, expenses and debt). The economic structure of the City presents asymmetries by strata of companies and at the sectoral level, which promote concentration, disarticulation and productive heterogeneity, becoming critical factors to advance socioeconomic development. The ongoing dual crisis (health and economic) represents a challenge to promote a new economic policy that allows stimulating better productive performance by sector and by strata of companies, particularly micro and small businesses. At the same time, it is imperative to explore fiscal policy mechanisms to transcend the restrictions of local public finances.