Saturday, December 9, 2023

Blackouts and exchange rates, a hard blow for commerce in Baja California

By Oscar Tafoya The economic activity in the commercial sector of Baja California registered a sharp slowdown in the second quarter of 2023, according to the Quarterly Indicator of State Economic Activity released by the National Institute of Statistics and Geography (INEGI). According to the original figures, wholesale and retail trade in the state grew 1.6% at an annual rate between April and June of this year, below the 4.5% annual rate registered in the second quarter of 2022.

It is valuable to mention that the unusually high temperature during the second quarter of the year led to the temporary suspension of the supply of electrical energy in some locations, which affects the commercial sector of Baja California, according to interviews the Bank of Mexico conducted with businessmen from the north in its report on the regional economy for the second quarter of the year.

“They explained that this situation reduces the operating hours of commercial establishments that depend on the said supply for their operation, a situation that affects the value of what they sell.” Finally, “they indicated that the appreciation of the peso led more consumers to purchase goods in the border cities of the southern United States because of the better relative prices of the peso.” The report mentions that “this is the case of clothing, footwear, accessories, electronics, personal hygiene products, groceries, household cleaners, and linens, affecting the sales of commercial establishments located in the northern entities of the country”.

World Nation News Desk
World Nation News Desk
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