Last week, Mexico's government introduced a $3.4 billion recovery plan for the storm-ravaged coastal city of Acapulco following the impact of Hurricane Otis (Reuters). The plan encompasses tax breaks, humanitarian assistance, and infrastructure reconstruction. Mexico is also expecting financial support from catastrophe bonds and insurance provisions, which could reach between $30 million and $60 million (Reuters). 

Hurricane Otis led to over 100 casualties and extensive damage to homes, hotels, and businesses in Acapulco, resulting in a significant power outage. President Andrés Manuel López Obrador deployed over 10,000 troops and 1,000 government workers to assist with the post-storm recovery efforts (Forbes). To address the pressing needs of the affected population, the recovery plan includes accelerating social welfare payments, waiving electricity charges until February, providing essential household items to flooded homes, and distributing basic foodstuffs to 250,000 families weekly for three months (Reuters). 

Major retailers such as Walmart de México and Soriana are collaborating with the government on this recovery effort (Reuters). Further, the plan allocates $575 million for the reconstruction of Acapulco's damaged infrastructure, and the city, along with nearby Coyuca de Benítez, will be exempt from paying taxes until February 2024 (Reuters). Obrador assured that additional funding would be allocated if necessary, given that the storm's damages are estimated to be between $10 billion and $15 billion (Forbes). Rapid intensification of hurricanes, like Otis, has been a recurring issue during the 2023 hurricane season, often exacerbated by increasingly warm waters, intensifying the impact of such storms.