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October 18, 2025
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The economic risks due to the rains in Veracruz, Hidalgo, Puebla, Querétaro and San Luis Potosí are limited

The economic risks due to the rains in Veracruz, Hidalgo, Puebla, Querétaro and San Luis Potosí are limited

Tragedy

Veracruz, Hidalgo, Puebla, Querétaro and San Luis Potosí suffered intense rains from October 1 to 9, which caused 126 municipalities to be affected by the loss of lives, housing and the main sources of income for families.

As of this Thursday night, the balance is 70 dead, 72 missing and more than 300,000 affected. The Huasteca and Sierra Norte areas are the most affected.

The rains caused damage to 821 educational establishments in Hidalgo, Querétaro, San Luis Potosí, Veracruz and Puebla.

In addition, Veracruz and Tamaulipas remain on alert due to the rising level of the Pánuco River and have begun to install shelters.

Economic impact

At a macroeconomic level, the damage is limited, since the affected municipalities have a very limited representation in the Gross Domestic Product (GDP), with almost 1% of the total, according to a report from the Banamex Economic Studies Unit.

“At the national level, the impact in these municipalities seems modest compared to larger urban areas. However, local impacts (eg, blockades and closures on Huastecan roads) generate specific risks in agricultural supply chains,” he says.

He adds that in Veracruz, the interruption of activities and communications in Poza Rica affects the transportation of fuel, while in Hidalgo and Puebla, the loss of crops such as corn and coffee impacts small producers and local markets.

Data from Inegi show that in the first quarter of 2025, the economy of Veracruz had a marginal advance of 0.4%, while Hidalgo, Querétaro and San Luis Potosí rose 0.9%, 1.5% and 3.1% respectively. Only Puebla’s economy had a contraction of -0.1%.

Banamex highlights the expenditure of 16,000 million pesos contemplated in the reconstruction, which could generate a recovery in the state economies in a shorter period of time.

“The economic risks derived from the October 2025 floods are potential and have yet to materialize, depending on the duration of the interruptions and the effectiveness of the government response. At the national level, the risks to GDP and inflation are limited, given the marginal economic weight of the affected municipalities and the compensation for agricultural overproduction in other regions. However, the local impacts on informal employment and chains agriculture requires focused attention,” he points out.

Support continues

The government of President Claudia Sheinbaum created an internet site to report on the damage caused by the rains and the actions that have been taken to address the emergency.

The microsite with domain www.gob.mx/reporteporlluvias/carreteras-index.html It will be administered by the Ministry of the Interior (Segob) in coordination with the National Civil Protection Coordination (CNPC).

The Government claims to have sufficient resources to address the emergency and that these resources arrive faster than the Fonden process.

Ricardo Trevilla, Secretary of National Defense, assures that three air bridges were enabled in Hidalgo, the state with the largest number of “isolated” towns.

21 helicopters participate in these airlifts and a main base was established at the Pachuca airport and two advanced logistics bases in the towns of Zimapán and Zacualtipán, which have the capacity to transport 4,872 food items per day, to benefit 19,488 people affected by the rains.



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