They refute AMLO: CitiBanamex says resources for Acapulco after Hurricane Otis are “limited”

The resources proposed by the Government of Mexico for the recovery of the port of Acapulco are “limited“and could involve a recovery”very slow and partial” of the economy was the area most affected by Hurricane Otis, the CitiBanamex bank considered this Monday.

“In our opinion, the resources announced so far by the Government, equivalent to just 0.2% of the gross domestic product (GDP), seem very far from those necessary for a total reconstruction of the affected area, so they could imply a recovery very slow and partial of the Acapulco economy”the bank noted in an analysis.

Last Wednesday, the Mexican Government estimated the cost of repairs and social support on the coast of the southern state of Guerrero at 61,313 million pesos (more than US$3,500 million), while President Andrés Manuel López Obrador has promised “stand up” to Acapulco for Christmas.

After the surprising impact of Otis, after reaching the highest category in record time, the damage reached 80% of the hotels and businesses, more than 90% of the homes and 65% of the extension of the coast of Guerrero, in which is inhabited by almost 3 million Mexicans and which has so far claimed the lives of 48 people.

In this sense, the CitiBanamex report estimated that, during the last quarter of the year, a drop of up to 40% was observed in economic activity in the areas most affected by Otis.

In addition, the Mexican Government declared a disaster emergency in only two municipalities on the coast of Guerrero, on the Mexican Pacific: Acapulco and Coyuca de Benítez, although in a first list it had included 47 towns in Guerrero, something that López Obrador attributed this Monday to an error.

CitiBanamex stated that the estimated amount for recovery and social support for the victims of Acapulco “is very limited,” although it recalled that the Ministry of Finance and Public Credit of Mexico stated that it will provide financial aid to the affected population.

Meanwhile, the Fitch agency estimated the catastrophic losses at US$16 billion, while the business chambers have calculated a two-year recovery and almost US$17 billion for the reconstruction of Acapulco, the most damaged city and one of the most touristic. from Mexico.

The president assured this Monday that at least 35 hotels have committed to reopening in March or April, when the next edition of the Tianguis Turístico will be held in the port, the main business event in the sector, which hopes to be an engine to promote and speed up the recovery work in infrastructure and economic activities, in an area that lives off tourism.

López Obrador: budget “is enough”

The president of Mexico, Andrés Manuel López Obrador, assured earlier on Monday that the budget for the recovery of the port of Acapulco after Hurricane Otis, which has left 47 dead, 53 missing and thousands of victims, is “enough” and “There is not limit” for whatever is needed.

”It is enough, there is no limit, it is all that is needed to rebuild economic and tourist activity in Acapulco, serving everyone, with preference to the poorest, most needy people, which is what we are doing.“said the president during his morning press conference.

His statements come hours before the Mexican Congress votes on the Government’s budget for 2024, questioned for not including a specific item for the reconstruction of the southern state of Guerrero after the historic Otis coup.

The Mexican president thus responded to requests for more resources for Acapulco, one of the most important tourist sites in the country, which has even led residents of that place to organize a march towards Mexico City to protest the lack of aid in the upper areas of the port.

In this regard, López Obrador assured that these demonstrations “They are opportunism, politicking” and are organized by groups opposed to their Government.

The president insisted that in December the improvements will be noticeable in Acapulco and Coyuca de Benítez, the municipalities most affected by Otis, which made landfall on October 25 as a category 5 hurricane and broke the record for the intensification of a cyclone in Mexico.

”There will be no shortage of resources. We have enough budget”, he remarked.

He pointed out that so far 172,102 homes have been censused, of the 250,000 estimated in Acapulco, where he promised that all victims will have direct support depending on the impact on their home.

He also explained that they are already delivering baskets with 24 basic consumer products and, in total, he estimates that they will provide 3 million pantries, with an average of 35,000 daily for 3 months, in which they will invest about 3,000 million pesos (US$ 171 million ).

Likewise, he presumed that “In no government, in the face of such a tragedy, has so much support been given to the people”.

Last week, the Mexican Government estimated the cost of repairs and social support in the southern state of Guerrero after the impact of Hurricane Otis at 61,313 million pesos (more than US$3,500 million).

However, the Fitch rating agency estimated the catastrophic losses at US$16,000 million, while the business chambers anticipated two years and up to 300,000 million pesos (US$17,132 million) for the reconstruction of Acapulco, the city most damaged by the cyclone. .

Furthermore, López Obrador has promised “stand up” to Acapulco for the Christmas season.