“A better security environment could encourage investment and in this context investors’ concerns about governance can be understood,” said Alejandrina Salcedo, Banxico’s director of economic analysis.
The economist highlighted that this context of insecurity is key in the context of the nearshoring that is being observed in Mexico and that is generating a demand for construction.
A strengthening of the rule of law and public security would grant greater certainty to companies, would facilitate their operation, would reduce their costs, and could boost the flow of investment not only from the regions that traditionally receive a greater part of said flows, such as the case of the north and central regions, but also of the south, highlights the report.
The inflation in Mexico ended February in 7.62% At an annual rate, a level similar to that of the previous month and still well above the Central Bank’s goal of 3% +/- one percentage point.
