The history of Mexico could not be told without the section of natural phenomena that have impacted various areas.
Hurricane Beryl , the first of this season in the Atlantic, entered Mexico early this Friday as a category 3 to the east of the Yucatan Peninsula, after its disastrous passage through the Caribbean.
It is estimated that Beryl could affect the economies of Quintana Roo, Yucatán, Veracruz, Campeche and Tamaulipas , key states in Mexico’s tourism, oil and agricultural production. What implications and impact does this situation entail?
Mexico has various regions that play a crucial role in its national economy . These states are not only important tourist destinations, but also production centers. However, its vulnerability to natural phenomena, such as Hurricane Beryl, puts its economic stability at risk.
According to the National Institute of Statistics and Geography (Inegi) , Quintana Roo registered an annual variation of 10.6% in its economy in the fourth quarter of 2023, standing out as one of the states with the highest economic growth in the country .
Quintana Roo’s economy relies heavily on tourism, with world-famous destinations such as Cancun, Playa del Carmen and Tulum attracting millions of visitors each year.
Tourism infrastructure drives commerce and services, including restaurants, shops and recreational activities. Furthermore, international connectivity and port infrastructure are essential to maintain the flow of tourists and goods.
In that sense, the Mexican Institute for Competitiveness (IMCO) highlighted that Quintana Roo has the highest tourism GDP in the country, representing 18.9% of its economy. Due to the hurricane, all these activities had to be stopped as a preventive measure.
On the morning of this Friday, July 5, the governor of the entity, Mara Lezama, reported that Quintana Roo remained on red alert, since Hurricane Beryl was located on land 25 km north-northwest of Tulum and 235 km north of Tulum. southeast of Progreso, Yucatán, representing the maximum danger for the population.
In the case of Yucatán , the director of #SoyLogístico Mérida chapter, Rodolfo López , also expressed his concern about the logistical impacts of Hurricane Beryl.
“There are a series of impacts that must be prevented. As a result of this phenomenon, routes are blocked due to flooding and landslides, which prevents the passage of trucks and delays the delivery of products. “This affects the supply chain and the distribution of supplies, as stores begin to run out of the assortment they should have under normal conditions,” he commented.
López also noted that panic buying exacerbates the problem , depleting stores’ normal inventories, although he explained that local supermarkets prepared themselves, meeting with buyers and corporations to ensure they had essential products and sending a pre-inventory.
However, local regulations, such as the suspension of supermarket assortments on July 4, further complicate the situation. López mentioned that “marine and air transportation will have less impact because we do not supply ourselves here in the area in that way, but marina and port operations are closed, affecting any scheduled operations.”
In addition, land logistics is already showing damage in some municipalities due to rain and breakdowns in roads, preventing access to convenience stores and increasing transportation operating costs due to delays and necessary alternatives.
“We must be very attentive to federal and municipal calls for protection. Changes in demand and decreased supply are also significant challenges,” López concluded.
For his part, Mauricio Vila, governor of Yucatán, reiterated this Friday that the state also remains on red alert . In addition, on Thursday afternoon the closure of Puerto Progreso was confirmed, interrupting the flow of maritime goods, affecting exports and imports.
Yucatán is of utmost economic importance. The Inegi reported that this entity showed an annual economic growth of 5.5% during the fourth quarter of 2023, broken down into increases in primary (0.1%), secondary (9%) and tertiary (4.4%) activities.
Agricultural and fishing production , although smaller compared to other sectors, is vital to the local economy .
Likewise, the manufacturing industry grew, driven by diversification and modernization, and the services sector, which includes tourism, commerce and professional activities, is a significant part of the Yucatan economy, while Puerto Progreso is a strategic point for logistics. and trade , facilitating the export and import of goods, and its economic importance is fundamental for the region.
Veracruz, Campeche and Tamaulipas are other entities that could be affected by Hurricane Beryl.
In the case of Veracruz , if this natural phenomenon strengthens, oil facilities could suffer damage, interrupting the production and distribution of oil and gas , which would affect income and could lead to fuel shortages.
Crops and fishing grounds could be devastated, resulting in loss of income for farmers and fishermen and increased food prices. Port activity could be interrupted , affecting international trade and logistics services.
It must also be remembered that the port of Veracruz is the main maritime gateway for trade in goods in the Gulf of Mexico , mainly in exchange with Europe and other connections with the American east.
In Campeche, due to the economic importance, the impact on agricultural lands and fishing areas would lead to economic losses for producers and increased prices. Although the impact on tourism would be minor compared to Quintana Roo, the destruction of historical and cultural sites could affect this sector.
Finally, Tamaulipas would face significant challenges due to Hurricane Beryl with the paralysis of activities. Animal husbandry, crucial for the state’s primary economy, is also at risk due to the flooding that the natural phenomenon could cause. Furthermore, the interruption of tertiary activities such as the distribution of goods and services could negatively affect the local economy.
Tamaulipas has the ports of Altamira and Tampico , also two essential maritime connections for different industries, such as oil, agriculture and even automotive.
Hurricane Beryl represents a significant threat to Mexico’s economy, putting vital sectors such as tourism, oil and gas production, agriculture and fishing at risk. Coordination and mutual support will be key to overcoming adversities and restoring economic stability in the region.
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