Close to 40,000 businesses were closed during the Covid-19 pandemic, according to media reports.
La Crónica newspaper reported that those companies that shut their doors were both formal and informal.
Baja California Economic Studies Center President Roberto Valero told the newspaper that informal businesses that don’t pay benefits to workers were especially affected. For example, small businesses that sold food to students were forced to close as schools were shut down for two years.
The economist based his comments in reports from the National Institute of Statistics and Geography.
A Mexican Institute of Social Security report indicates that 16,608 registered companies closed in the last couple years.
Valero said the manufacturing industry laid off more than 15,000 employees in the last quarter of 2021.
Baja California’s recovery can take up to six years, depending on how aggressive the state turns in terms of promotion of investment. The State’s Gross Domestic Product increased 1 percent in the third quarter of 2021.