War will not affect Oaxaca’s economy, “it’s already bad,” they say

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The lack of industry, little economic recovery, and little economic policy are some of the problems that Oaxaca has always faced, so the economic decisions due to the conflict between Russia and Ukraine would not affect it so much, said economic analyst Miguel Ángel Hernández Cruz. .

He pointed out that Oaxaca would be affected by inflation and the increase in prices of products such as gasoline; however, the impact would not be the same as in the states of El Bajío and the north of the country that produce beer or other products that are exported.

“You have to visualize the problems that Oaxaca has because the fact that the conflict between Russia and Ukraine will not impact the state, is not something because it is a power, but rather that we have a very bad economy,” he assured.

The economist mentioned that this conflict, although it is a problem for the whole world, the effects mainly on the state will not be as bad, as it is in the case of corn, since Oaxaca is self-sustaining from this cereal, although not enough to generate income.

He stated that this is because the economic policies that the state authority has outlined are not enough to boost the productivity and competitiveness of the sector, and although there are many priorities, they should focus on the food sector.

“The policies that have been applied in Oaxaca have a certain vision, but they are not the most appropriate, there is no clear industrial policy; there is much to do, but that is not being followed, economic activities are characterized by large companies, but micro-enterprises stand out in the state, ”he lamented.

Affectations that there will be

Hernández Cruz recalled that although Mexico is an oil-producing country, it does not produce natural gas, so it will be affected, since this product is obtained from Russia, in addition to importing yellow corn, wheat, barley, and aluminum into the country.

“You have to visualize the problems that Oaxaca has because the fact that the conflict between Russia and Ukraine will not impact the state, is not something because it is a power, but rather that we have a very bad economy.”

Miguel Ángel Hernández Cruz, Economic Analyst

Businesses continue to lower their curtains in Oaxaca

The economic crisis due to the pandemic, protests, and street vendors continue to affect established businesses.

Did they block you? Only if you are from Oaxaca will you understand 

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Derived from the Covid-19 pandemic and its variants, establishments located in the Historic Center of the city of Oaxaca, as well as in some shopping malls, continue to close their curtains.

Unable to pay rent, taxes, employee salaries, and supply merchandise, some business owners chose to close and look for another option to obtain economic income.

In shopping centers such as Plaza del Valle, Plaza Oaxaca, Plaza Bella, the Macroplaza, you can see some establishments that have closed permanently.

In the historic center, you can also see some stores that have lowered their curtains, arguing that they can no longer sustain their businesses and that the crisis of the Covid-19 pandemic continues to affect the country.

In addition to this, due to the constant protests and irregular trade on public roads, businessmen have had economic losses in the last two years.

Every time there are few entrepreneurs who risk investing in a new business, the modality at this time is sales through social networks or through applications since they save the rent payment of a local.

Established merchants hope that their economic situation will strengthen and they will stop closing the businesses of Oaxacan people that also generate jobs.

Source: diariomarca.com.mx, nvinoticias.com

The Oaxaca Post