MexECON Blog

Limited Damage From Quake?

A quick review of press reports suggests there has been only limited damage from the earthquake that hit northern Mexico on Sunday.  According to reports, the quake's epicenter was a few dozen miles from Mexicali, not far south of the U.S. border in the state of Baja California.  The quake registered a strong 7.2 on the Richter scale, and it was reportedly at a shallow depth of just 6 miles.  Nevertheless, press reports to date say there have only been two fatalities from the quake, and damage seems limited to power outages and minor structural damage to some buildings.  If those reports turn out to be accurate, Baja California will have dodged a bullet.  The area around Mexicali has a relatively high population density, and it hosts numerous maquiladora manufacturing plants.  Such plants are an important source of employment in Mexico, and they are responsible for a great deal of the country's exports.

Patrick Fearon, CFA
Vice President, Fund Management 

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