Jose Cruz
Financial Analyst
2020 Recap: Economic and Social Challenges in the Era of Pandemic
Year 2020 has ended, a period that will undoubtedly be marked in history and in the memory of all who have experienced it. A tremendously difficult time for each of us where we have faced unprecedented situations. If anything has shown us this year, it is that absolutely everything can change from one moment to another without prior notice, what we thought was secure turns out not to be so. Who would have thought a year ago that we would be on the verge of a pandemic?
The global scenario affected a large number of people economically; in Mexico, the closures of various commercial activities caused a significant number of SMEs to go bankrupt, consequently, a considerable number of jobs were lost, and projects that would generate substantial investment were postponed or canceled, investments planned before the pandemic escaped. On an individual level, many Mexicans have lost their main source of income, whether it be their job, business, or small business, unfortunately, entire families lost the main provider of the home due to COVID19.
Informal businesses, which represent a key piece of the national economy, were among the most affected. The reduction in their sales has led to some of the most difficult times for people who depend on this sector. We saw severely affected merchants, some whose annual income practically depended on seasonal sales in a particular month, such as floriculturists in November, or those whose economic activities depend heavily on tourism. Stay at home and, in many cases, not even having enough to eat, or go out to seek income risking being infected? This is the great dilemma we have faced in recent months.
This new year begins with hope, a vaccine that promises to be the engine of our country's economic recovery; nothing will be the same as before because there have been social changes at a structural level. After a crisis, one emerges stronger thanks to the lessons learned in the process, which will lead us to adapt to a new normality that we will experience in the post-coronavirus times. But what are these lessons that we should delve into?
I believe that the most fundamental is an empathetic outlook towards others, although we are all experiencing this pandemic, not everyone faces it in the same way. For some, the most difficult thing during this time was to lose a trip or feel frustrated about not going out or postponing a party, while others have seen their relatives die, and some suffer intensely from the economic crisis. Therefore, it is vital that we seek to understand those in front of us in a deeper way, not just see the different figures that have been given this year as mere numbers or indicators, but to realize that in each of them there is a story, there are feelings, emotions, and people experiencing these situations.
We do not know when the tide may change; 2020 showed us this. Therefore, it is vital to emphasize the importance of supporting each other as a society, lending a hand to those who truly need it, buying from local businesses, favoring the national economy. For those who have the means, investing in social projects that generate real benefits in various sectors. Employers should ensure the continuity of the business and prioritize the well-being of those who depend on it, setting aside, for a moment, the pursuit of maximum profit. This 2021 comes with enormous challenges, which only together, as a society, we will be able to face and emerge from this crisis as soon and as best as possible.