Simply Economics, from Mexico

Industrial MX Forum Boosts Sinaloa’s Economy, Mexico City’s Drought Crisis

Mazatlan brings together 20 secretaries of economy of Mexico to position Sinaloa as a state with great industrial potential. Meanwhile, extreme drought increases costs and impacts Mexico City's economy. Simply Economics covers the potential economic growth in Sinaloa and the economic consequences of the severe drought in Cdmx.Sources:https://www.elsoldemazatlan.com.mx/local/mazatlan-reune-a-20-secretarios-de-economia-de-mexico-12123308.htmlhttps://www.larepublica.co/globoeconomia/la-sequia-extrema-incrementa-los-costos-e-impacta-economia-de-la-ciudad-de-mexico-3891883Outline:(00:00:00) Introduction(00:00:39) Mazatlan brings together 20 secretaries of economy of Mexico(00:02:42) Extreme drought increases costs and impacts Mexico City's economy

Duration:: 5m
Broadcast on:: 23 Jun 2024
Audio Format:: mp3

Mazatlan brings together 20 secretaries of economy of Mexico to position Sinaloa as a state with great industrial potential. Meanwhile, extreme drought increases costs and impacts Mexico City's economy. Simply Economics covers the potential economic growth in Sinaloa and the economic consequences of the severe drought in Cdmx.

Sources:
https://www.elsoldemazatlan.com.mx/local/mazatlan-reune-a-20-secretarios-de-economia-de-mexico-12123308.html
https://www.larepublica.co/globoeconomia/la-sequia-extrema-incrementa-los-costos-e-impacta-economia-de-la-ciudad-de-mexico-3891883

Outline:
(00:00:00) Introduction
(00:00:39) Mazatlan brings together 20 secretaries of economy of Mexico
(00:02:42) Extreme drought increases costs and impacts Mexico City's economy

(upbeat music) - Good morning and welcome to Simply Economics from Mexico. It's Sunday, June 23rd. On today's show, Mazatlan brings together 20 secretaries of economy of Mexico while extreme drought increases costs and impacts Mexico City's economy. Plus stay tuned for more economic news from Mexico. This coverage and more up next. I'm David and you're listening to Simply Economics from Mexico. We start off with news from Mazatlan in the state of Cine Loa, which recently hosted the Industrial Forum MX, bringing together over 20 secretaries of economy from various entities across Mexico. The goal was to position Cine Loa as a state with significant industrial and manufacturing potential. For more on this, we turn to our correspondent in Mazatlan. What can you tell us about the importance of this forum? - This forum represents a major opportunity for Cine Loa to showcase its potential for industrial growth and job creation. The Secretary of Economy of Cine Loa, Javier Gaxiola Copel, emphasized that Mexico as a whole is experiencing a significant opportunity to advance its industry. And Cine Loa wants to demonstrate that it can actively participate in this progress. Attracting new companies to the state could translate into a substantial increase in local employment. - Who were some of the key participants in this forum and what topics did they discuss? - The forum brought together a diverse group of business and academic leaders. They participated in various panels that focused on the challenges and opportunities related to human capital in the industry, as well as the infrastructure and financing necessary to boost the sector. - The Mexican Association of Secretaries of Economic Development and the Mexican Institute for Competitiveness were also represented at the event. - How does this forum fit into the broader economic growth and development happening in Mexico right now? - Mexico is currently experiencing significant economic growth and industrial development. Many states are looking to capitalize on this momentum to attract new businesses and spur job creation. By hosting this forum and bringing together key leaders from government, business and academia, Cine Loa is positioning itself as a state that is ready and eager to participate in Mexico's ongoing economic progress. The state hopes to leverage its strengths to become a hub for industrial and manufacturing activity. - It certainly seems like an exciting time for economic development in Cine Loa and across Mexico. Thank you for your insights from Mazat Lan today. - Shifting our focus to the capital, Mexico City has been uninterruptedly affected by some degree of drought in 100% of its territory for more than 16 months, according to the drought monitor in Mexico from the National Water Commission. The capital started 2023 with all its territory in the abnormally dry category, rising two levels to severe drought in May. Here to discuss the economic implications is our correspondent. Can you explain how the drought is impacting Mexico City's water supply and costs? The prolonged drought has significantly decreased the levels of the dams that supply the Cutsamala system, which provides about 30% of Mexico City's drinking water. Low water levels make it more difficult and expensive to clean the water for consumption due to higher concentrations of sediments and pollutants. This leads to increased maintenance costs and supply cuts to avoid damage to the infrastructure. The Cutsamala system has to pump water over 1,100 meters and 127 kilometers. So the energy costs are also very high when water levels are low. What are some of the broader economic impacts of this water scarcity in the capital? Water scarcity is contributing to higher inflation levels in Mexico City. 93% of the city's water goes to urban, public and domestic use. So the biggest impacts are on basic services like hospitals and homes. When water quality drops or rationing begins, it can lead to more diseases and health issues. The service sector, including restaurants and commercial buildings, is facing higher operating costs from having to pump water or buy it from tankers. This water crisis could even influence companies' decisions about establishing or maintaining operations in the capital. What are some of the infrastructure challenges making this situation worse and what kind of investments are needed to address the crisis? Mexico City's water distribution infrastructure is old and deteriorated. Authorities estimate that up to 40% of the water is lost due to leaks in the pipe systems before even reaching consumers. Modernizing this infrastructure to reduce losses and improve efficiency is an urgent priority. The city also needs to invest in reforestation and conservation of watersheds to improve aquifer recharge and water quality. But these infrastructure upgrades will require significant investments to resolve the worsening water crisis. Thanks for that insight into how the prolonged drought is impacting both the water supply and the economy in Mexico City. Clearly addressing this crisis needs to be a major priority for the capital. And with that, we wrap up our stories for today. Thanks for listening to Simply Economics from Mexico. We'll see you back here tomorrow. (gentle music) (gentle music)