Sheinbaum’s main commitment is that growth is sustained, says the IP

Julio Gutierrez

The newspaper La Jornada
Monday, August 19, 2024, p. 8

For the private sector, the main commitment that the next government, headed by Claudia Sheinbaum, must have is to ensure sustained economic growth to improve the well-being of the population.

The weekly analysis by the Center for Economic Studies of the Private Sector (CEESP) indicates that uncertainty and distrust regarding the Mexican economy are increasing due to a deterioration in some indicators, expectations of a slowdown in the United States and the possible authorization of a series of reforms in the country.

Mexico requires a sustained, higher rate of growth in order to improve the well-being of the population. This must be the specific commitment of the next government. If a policy that does not provide incentives continues, companies and families will continue to be limited to the opportunities offered by a weakened economy based on discretionary decisions in favor of the state.added the CEESP.

According to private sector analysts, the persistence of a business environment without incentives as a result of a lack of transparency, inefficient regulation and a weak rule of law will contribute to the country maintaining a poor growth rate and welfare levels remaining depressed.

And that is why “wasting the opportunities that the country currently has (such as the nearshoring), limiting investment with policies that are unfriendly or not at all investment-friendly could cost the country approximately two additional points of Gross Domestic Product growth.”

CEESP analysts stated that although some surveys or organizations have reduced their growth estimates for this year, the situation regarding the process of relocating companies keeps Mexico as an attractive country to invest in.

He said that a report from the Ministry of Economy shows that from January 1 to July 31, 166 investment announcements were made by the private sector, which means an investment expectation of 48.35 billion dollars that is expected to enter the country in the next two or three years.