Today: December 18, 2024
December 18, 2024
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The 2025 budget is not enough to attract investments through nearshoring

The 2025 budget is not enough to attract investments through nearshoring

“We are seeing that the investment and infrastructure requirements are very important, and the 2025 economic package is even reducing the participation to invest in public works. The great challenge in the country is to be competitive and we need a robust infrastructure; However, we are far behind in terms of electricity generation capacity, and above all clean. The last six-year term was practically not invested in expanding the highway network, there is also an important pending in the maintenance of the highway network,” explained José Domingo Figueroa Palacios, national president of the Mexican Institute of Finance Executives (IMEF).

Figueroa Palacios added that all these areas are important to attract investments from companies that seek to serve the United States market from Mexico.

When analyzing the government’s investment plan, it is observed that together with the announcement of major passenger train works, investment in road transport falls by 27,000 million pesos, compared to what was approved for 2024. In addition, strong cuts in works are noted. of hydrocarbon infrastructure for 49,000 million, or 19,500 million less for hydro-agricultural infrastructure, México Evalúa detailed.

“The positive part is that the Secretariat of Infrastructure, Communications and Transportation (SICT) recovers its role in the development of public works in relation to the Armed Forces,” highlighted Jorge Cano, researcher of the Public Expenditure and Accountability Program of Mexico Evalúa.

According to the Organization for Economic Cooperation and Development (OECD), the ideal proportion of infrastructure investment with respect to GDP is no less than 5%, the closest level to this has been 4.5% of GDP, achieved in 2010 and 2014, according to records from the Ministry of Finance and Public Credit (SHCP).

As a proportion of total public spending, physical investment will also have less participation, going from 10.1% in 2024 to 9.1%, which reflects a lower participation and importance in public spending.



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