Economic impact of COVID-19 in Mexico and the world

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STRATEGY + INNOVATION IS WHAT WILL ALWAYS TRANSFORM THE ENERGY INDUSTRY APRIL 1 TO MAY 19, 2020

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PANEL 1 - WEDNESDAY APRIL 1, 2020

"ECONOMIC IMPACT OF COVID-19 IN MEXICO AND THE WORLD"

PARTICIPANTES Moderator: Master. Abril Moreno CEO - Perceptia 21 Dip.

Soraya

Pérez

Munguía

-

Deputy for Tabasco - Chamber of Deputies LXIV Legislatura Engineer Régulo Salinas Garza President - Energy Commission of the

Confederation

of

Industrial

Chambers CONCAMIN Engineer Associate

Erick

Sánchez

Director

and

Salas

-

Business

Development - IHS Markit Dr.

Gabriel

President

and

Farfán CEO

Mares -

-

Mexican

Community of Public Management for Results A.C.


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"ECONOMIC IMPACT OF COVID-19 IN MEXICO AND THE WORLD"

TOPICS

1. W h a t i s t h e i m p a c t t h a t t h i s i n t e r n a t i o n a l s i t u a t i o n i s g e n e r a ti n g i n M e x i c o a t a n e c o n o m i c , h e a l t h a n d h u m a n i t a r i a n le v e l? 2. W h a t e c o n o m i c a n d s o c i a l p o s i t i o n i s M e x i c o i n ? 3. I n a n a t i o n a l c o n t e x t , i s M e x i c o p r e p a r e d t o fa c e t he e co n o m i c situation? 4. W h a t d o y o u n e e d t o d o t o a v o i d fa lli n g i n t o a d e e p r e c e ssi o n ? 5. I s t e e n d o f t h i s h y d r o c a rb o n s e c t o r a le v e r fo r t h e co u n tr y 's development? 6. I n p o s t c r i s i s h a v e A n t i - C y c l i c a l P o li c i e s b e e n m a n a g e d ?


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"ECONOMIC IMPACT OF COVID-19 IN MEXICO AND THE WORLD"

"The Mexican economy is very resilient, however the problem is not starting today, it started from 2019, unfortunately the government has made legislative decisions that have not helped the country's economic activity, which led us to close the year with a decrease economic. The economy still resists, but the government has to take immediate measures that allow us to regain the confidence of investors, while surviving during the health contingency" - Dip. Soraya Pérez

Approximately in the month of December 2019

The problem we are facing has more to do with

a new COVID-19 virus (Coronavirus) arises in

the effects on demand and on the economy in

China and on March 11, 2020 it is recognized as

general, the problem of COVID-19 what it is

a global pandemic, as a result of this we

doing

entered

risk,

worldwide, the possibilities of The exports that

governments begin to generate a binding and

we have as a country decrease considerably, here

the consequence is the fall of the production

the Mexican plant is going to suffer a sharp drop

chains worldwide, generating a drop in the

in demand, either from the export side or from

demand for goods and services.

the contingency measures that are being taken.

The Energy Policy is going to play a very

Expanding the part of the context, there is too

important role for the recovery of Mexico as a

much oil in the world, but there is also a sharp

motor that we have and that unfortunately it

drop in global demand, in the particular case of

has been misused and as something that does

Petróleos Mexicanos there are almost 20 million

not remain in the economy.

barrels that are lost in demand.

"Pemex is very important, of course, that one

In a national context, are we prepared as a

out of every three pesos that the government

country, are government policies, the private

spends comes from Petróleos Mexicanos, and if

sector, political parties, all ready to avoid falling

they as a company are wrong, the rest of the

into a deep recession?

quarantine

to

minimize

the

national finances will also be wrong", Deputy Soraya Pérez.

said

is

reducing

demand

and

consumption


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"ECONOMIC IMPACT OF COVID-19 IN MEXICO AND THE WORLD"

“The

resilient,

“What is being asked by the private sector is

however the problem is not starting today, it

Mexican

economy

flexibility in the fiscal part, we are talking about

started

the

offsetting the part of paying taxes for a while,

government has made legislative decisions that

thinking that the health crisis will end and that

have not helped the country's economic activity,

companies can operate again.

from

2019,

is

very

unfortunately

which led us to close the year with a decrease economic. The economy still resists, but the

On the other hand, in the part of solidarity with

government has to take immediate measures

the workers, it will depend on the possibilities of

that

of

each company, it should be mentioned that the

investors, while surviving during the health

allow

us

to

regain

the

confidence

issue has been mishandled by not calling it health

contingency”, said Deputy Soraya Pérez

continence, but rather a health emergency", said the Engineer Regulo Salinas.

This crisis takes us badly, the contraction that occurred

last

was

This moment is crucial in the history of our

basically due to a reduction in both public and

country, Mexico since the end of the 70's began

private investment, all due to the lack of

to identify oil revenues as a fundamental part of

confidence of the private investor and we

its public finances and from that stage to date it

require

has continued to use as an important source to

private

year

in

the

investment

economy,

to

revive

our

country In a scenario like the one we are experiencing,

governments

are

taking

measures anti cyclicals and Mexico began to consider it in a limited way.

oil rental income.


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"ECONOMIC IMPACT OF COVID-19 IN MEXICO AND THE WORLD"

“What we are experiencing today could be the

resources that are fast return, projects that

end of the era of oil income as a support for

begin

public finances, what will be seen in these

profitability projects, they cannot be projects

months will be the evaporation of the current

whose return on investment is 30 or 35 years

government's project, of considering Pemex as a

from now on.

to

generate

cash

flow

and

also

high-

lever for development and oil revenues as a tool to finance public finances and we will have to enter a situation in which the government will

There must be Anti-Cyclical Policies, which avoid

have to do what other governments in the world

or reduce a very sharp drop in demand and

are doing, collect taxes on industrial activity,

consumption.

economic activity and reinvest those resources in infrastructure and quality public services", commented Dr. Gabriel FarfĂĄn.

COMPLETE PANEL www.expoilandgasmx.com/expo-virtual

In conclusion of this panel, what is seen as the crisis in this 2020 around the oil industry is something government

unprecedented, in

the

world

there that

is could

no

*The recording of each panel will remain on our

be

website for 5 days after transmission.

prepared for everything that the issue of this pandemic generated, we have to look for


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PANEL STADISTICS

4,153 impacts that entered through different channels, which entered an average of 1.29 times lasting 00.02.01 per user.


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QUESTIONS AND COMMENTS If you have any questions through our Twitter account @oilgasalliance, you can ask the panelists questions. Whenever possible, they will respond within 12 hours of the panel. For more information please contact us: (55) 7158 6440 info@oilandgasalliance.com For commercial issues contact the Engineer Perla Ortega at the email perla.o@oilandgasalliance.com or at the cell phone 782 175 5424. For agenda items, contact Lic. Gabriela OrtĂ­z at gabriela.o@oilandgasalliance.com or at 55 5106 8254.


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