Governance problems, such as insecurity and political uncertainty, as well as inflation are the main factors that threaten to hinder the growth of economic activity in Mexico for the coming months, the Bank of Mexico (Banxico) reported on Monday.
Both items take 60% of the responses to the survey conducted by the central bank.
External conditions such as global economic weakness and the Fed’s restrictive policy; as well as internal problems such as the absence of a structural change or the weakness of the internal market are also seen as threats to the productive sector.
Last week, Gabriela Siller, director of economic-financial analysis at Banco Base, commented that the opportunity for Mexico to benefit from its geographical proximity to the United States (USA) and the relocation of plants of transnational companies is diminished by the recent differences between the United States and Canada with Mexico in energy matters within the framework of the T-MEC.
“Companies that want to arrive or reinsert themselves may be afraid that tariffs and fines may be imposed in Mexico, while the countries resolve the energy issue,” he said.
For the end of the year, the experts surveyed estimate that the Gross Domestic Product (GDP) will grow 1.8%,
They also contemplate that inflation is 7.8%, that is, almost double the central bank’s objective for this indicator of 3% +/- one percentage point. Therefore, the reference rate would be located at a maximum level of 9.5%.
