Although macroeconomic conditions around the world remain challenging as a result of the pandemic, in Mexico the environment is less adverse in macroeconomic terms, and, in the future, some infrastructure works have the potential to trigger development that could last several decades , considers Antonio del Valle, president of the Mexican Business Council .
During his participation in the Inter.Mx Expansión Summit 2022 , the representative of the private initiative pointed out that to take advantage of the opportunity that the country has, there is a lack of investment , since the current levels still have room to grow.
“Yes, there is investment in the country, but it is not enough. It is not reaching all sectors and regions so that there are opportunities for all Mexicans. In the north of the country, national and foreign investments arrive, but they represent about 18% of the Gross Domestic Product (GDP), which added to public investment –which is around 2.5% of GDP– represents just over 20% of GDP. If we want to grow at significant rates each year, the investment must be 24%-25% each year, and it must reach more regions of the country,” he said.
Del Valle considers that Mexico has a series of tools that make it attractive, both for national and foreign investment.
The main one is the United States-Mexico-Canada Agreement (T-MEC) , where there is an opportunity to increase the participation of Mexican companies in states on the other side of the border that are currently dominated by European companies and from other regions.
“When we say that we are the main commercial partner of the United States, we do not understand the detail. There are states with a predominant participation of Mexico, such as Texas, Arizona, California and Colorado , the Midwest with a very important participation of the automotive sector. However, if we go to the northwestern United States , Mexico’s shares drop dramatically.”
Added to this are some infrastructure works, which although they have focused on transportation in recent years –as is the case of the Mayan Train and the Felipe Ángeles International Airport (AIFA) –, also represent the entrance for growth in commercial terms. , such as the Transisthmian Corridor , which is currently being developed in the southeast of the country.
“It is a project for the country’s long-term development, and I think it will be in some way a trigger for the country’s development in the next 30 years,” he said. “You have to understand it as a general infrastructure project; It is not only a train that goes from one place to another, we are talking about infrastructure of industrial parks, ports, railways, which are going to give dynamics to that region”.
On the other hand, the president of the Mexican Business Council considers that there has been proper management of public finances, specifically in the area of debt. However, he considered that there is an area of opportunity to take on more debt for productive purposes . “On the more aggressive or conservative side, I prefer it to be on the conservative side and maintain a very manageable level of debt,” he points out.
Despite these conditions, Del Valle considered that there are still important challenges, such as the construction of an environment of certainty in legislative terms, but also of security, both for companies and consumers.
Hence, when referring to the possible successor of President Andrés Manuel López Obrador , the representative of the private initiative considered a priority a vision of the current situation of the country, as well as its potential.
“Whoever comes later has to be a person aware of the reality of our country , of the great advantages that we have mentioned, and also of the important disadvantages or lags that we live in our country (…) We have the capacity and all the tools to once again make the dynamic Mexico, full of opportunities, reach where no one has access to other opportunities”, he concluded.
