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Home Mexico

Covid crisis hits aesthetics and restaurants

by News Desk
December 28, 2020
in Mexico
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Crisis por Covid pega a estéticas y restaurantes
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Cafes, beauty salons and restaurants have been the most affected in this health emergency by Covid-19, as they are the main lines of business that are part of the 1,997 businesses that have closed this year, indicated the Secretary of Economic Development (Sedeco) from the capital, Fadlala Akabani Hneide.

He also mentioned that, at the same time, there are signs of recovery in economic activity.

Interviewed by EL UNIVERSAL, the official explained that during September, October and December most of these businesses closed, about 409; This is due to the economic crisis caused by the virus, but also due to low sales and lack of liquidity.

According to data from Sedeco, 103 businesses closed in January; in February, 109. By March, when the pandemic began, there were 79; in April, 54; in May, 80; in June, 45; in July, 118; in August, 100; in September, 124; in October, 128, and from November to December 1, 157.

The secretary said that most of the businesses that lowered his curtains have been coffee shops, beauty shops and restaurants; however, he pointed out, “it is possible that there are more that have closed, I do not have the figure, the ones I mention are what is registered in Sedeco.”

Despite the above, Akabani Hneide mentioned that, until December 1, they have notified the capital’s agency of the opening of 13 thousand 87 commercial businesses and limited that some may be recently opened and others were already operating.

The shops include mini-shops, offices, stationery stores, inns, cafeterias, pharmacies, hairdressers, cell phone stores, gyms, among others.

The municipalities that concentrate the activity are Cuauhtémoc, with 2 thousand 87 businesses; Benito Juárez, with 1,497; Iztapalapa, with a thousand 288; Miguel Hidalgo, with a thousand 73, and Gustavo A. Madero, with a thousand 58.

He added that economic growth is observed, since the National Association of Self-service and Department Stores (ANTAD) reported an increase in sales of around 8% in recent months.

He mentioned that during El Buen Fin, business sales increased 2.5%, compared to 2019.

When asked if the City was paralyzed and jobs were lost from April to June, the head of Sedeco declared that although 53% of non-essential businesses were closed, 47% were not, since they are considered essential, since they belong to the pharmaceutical sector , health, supply, telecommunications, finance, and construction.

“Mexico City did not close and will not close 100% [los comercios]We followed a scheme and thanks to that the economy was not paralyzed. Even jobs continue to be generated and commercial stores were opened ”, he assured before returning to the red light in the capital.

From December 18, 2020 to January 10, 2021, only essential and neighborhood businesses can operate in the City.

Supports

As of January 15, 2021, through the Social Development Fund (Fondeso), credits will be granted to micro and small companies. 500 million pesos will be allocated in order to grant 50 thousand credits for a single amount of 10 thousand pesos.

The foregoing will be for a payment term of 24 months with a grace period of four months, an ordinary interest rate of 0% and a monthly payment method.

The registration, comparison and procedure will be completely online through https://tramites.cdmx.gob.mx/fondeso.

This is the second time that the Government of Mexico City has granted loans to businesses due to the crisis caused by social confinement due to coronavirus.

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