The upcoming inauguration of Donald Trump as president of the United States has generated uncertainty in Yucatan, one of Mexico’s best-performing economies in recent years.
In 2019, Yucatan’s economy grew by 1.6%, making it the sixth fastest-growing state economy in the country. However, the protectionist and immigration policies that the new US administration might implement threaten to undermine this growth.
The export sector is particularly vulnerable, with Yucatan recording foreign sales of $1.055 billion in 2019, a 1.8% increase from the previous year. The imposition of new US tariffs could affect the competitiveness of Yucatan’s products, reducing demand and impacting local production.
Additionally, uncertainty could deter key investments in industrial sectors. The tension between the United States and China could also have adverse effects in Yucatan, where Chinese capital has been gaining ground in recent years. Chinese companies operate in the region, focusing on sectors such as LED light manufacturing and construction materials.
In 2019, the state government signed a letter of intent with Holley Global to develop a 1,000-hectare industrial park in Umán, aiming to attract more Chinese investments and create jobs. However, new US trade barriers could discourage these investments, jeopardizing projects like the industrial park and limiting the region’s economic development.
Local businessmen are also concerned about a potential decrease in remittances, which could further impact the economy.
Source: El Informador
