In the context of the slowdown in the economic recovery and the downward revision of growth forecasts, the President of Mexico, Andrés Manuel Lopez Obrador asserted that the Mexican economy will be able to get out of the economic crisis because it did not borrow and, praised the strength of public finances
We will soon finish coming out of the economic crisis, he said in front of more than 100,000 attendees at Amlofest, as they qualified the massive attendance of citizens to the Third Government Report.
President López Obrador spoke to his followers; to those who maintain it at the highest level of popularity, in its third year of government.
Without room for self-criticism and with marked optimism, the chief executive observes a positive scenario for the national economy.
Therefore, he highlighted, in his message, the President of the Republic establishes his positive expectations about the Mexican economy in his flagship works.
He asserted that there are resources for his priority projects such as the Dos Bocas refinery, the Mayan Train and the rescue of the electricity industry, as well as the Isthmus canal, all financed with the budget without contracting debt.
However, such projects have generated concern, due to the high and growing budgetary injections that have been applied and the lack of projections of their expected profitability.
It is striking that López Obrador has mentioned the Electricity Reform and the rescue of the CFE, among the mainstays of economic growth, because it is one of the issues that most worries private investors and because analysts consider that if it is approved as planned it will negatively impact economic growth.
In contrast to the presidential optimism in the morning, the Bank of Mexico threw a bucket of ice water on official expectations.
Like the analysis teams of different private financial firms, Banco de México reduced its economic growth forecast for the end of the year from 6.2% to 5.4% due to product shortages, inflation and the pandemic.
The central bank governor, Alejandro Díaz de León, highlighted that the risks that could lead to a downward revision of the estimate of economic growth are: a worsening of the pandemic that leads to new restrictive measures; bottlenecks are prolonged and input costs rise; episodes of volatility in financial markets, as well as a recovery in investment spending lower than expected.
For her part, Victoria Rodríguez Ceja, the presidential nominee to occupy the governorship of the central bank, during her appearance showed an institutional position, endorsed that she will seek to reduce inflation and that she will respect the autonomy of Banxico, in case of being ratified by the Senate of the Republic.
The still Undersecretary of Expenditures made a very important proposal because if it is fulfilled, it will guarantee the strength of the central institute.
He said that the autonomy of Banxico has allowed it to remain independent of the fiscal and political cycle.
Autonomy – he emphasized – has been essential for anchoring long-term inflation expectations and is a sign of the great institutional credibility that this institution has.
The optimistic presidential message on economic matters contrasts with the worrying expectations of analysts.
Glimpses
The good news is that neither the slowdown in the economic recovery nor the high inflation of 7% derailed the tripartite purpose of raising the purchasing power of workers.
Mexican government, private initiative and workers, agreed a new increase to the minimum wage.
Conasami agreed to increase the minimum wage by 22%; it will go to 172.87 pesos a day. Well.
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He has worked non-stop in newspapers, magazines, radio, television and the Internet, in the last 31 years he has specialized in business, finance and economics. He is one of the three hosts of the Alebrijes, Águila o Sol program, a program specializing in economic issues that is broadcast on Foro TV.
