EconomyMexico requires reforms to grow, says Nouriel Roubini

Mexico requires reforms to grow, says Nouriel Roubini

The Mexican economy suffered a lot from the covid pandemic and now its recovery is gradual; However, the threat of a global recession makes the Mexican government’s forecasts for this year look very optimistic, US economist Nouriel Roubini considered on Wednesday.

During his stellar participation in the Inter.Mx Summit Expansi√≥n 2022 with the presentation “Perspectives of Mexico and the global economy in times of turbulence”, the New York University professor affirmed that the country has not achieved enough to grow, for which must implement a series of reforms.

Mexico requires changes to improve income, stimulate competitiveness and limit oligopolies, as well as promote inclusion and reduce poverty. There is a lot of informality and the minimum wage is low, said the so-called “Doctor Doom” for having predicted the subprime crisis in 2008.

The economist added that another change that the country needs is to improve child care so that more women join the labor market.

The business environment should be friendlier and less supportive of state-owned companies.

In the medium and long term, expectations are better, since the country has demographic and population advantages and its proximity to the United States, a nation that has entered into a kind of “cold war with China” and which is the main stimulant for business relocation.

“Despite the economic policies and uncertainty, geopolitics is so strong that if companies do not return to the United States, they will return to friendly nations of that country,” said the economist.

global recession

Roubini warned that the world economy is heading for a strong recession, which, mixed with high inflation and limited fiscal stimuli, will generate negative impacts on developed nations and, therefore, on emerging ones.

There are changes in consumption, in the age of the population and in environmental issues that pose additional challenges to the world, he said.

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