TAG: Mexico

Jaime Perez-Seoane de Zunzunegui
5 December 2016
OBG Business Barometer

The recent victory of Donald Trump in the US presidential election has fostered uncertainty within the Mexican business community. Hundreds of articles have been written about what could happen if NAFTA were reviewed and how Mexico would cope without its major trading partner. 

Jaime Perez-Seoane de Zunzunegui
4 December 2016
OBG Business Barometer

In spite of benefitting from record levels of FDI and a booming automotive sector, Mexico’s economy is expanding at a fragile rate, with GDP growth expected to ease to 2.1% in 2016, according to the IMF. Nonetheless, as demonstrated by a recent survey of C-suite executives by Oxford Business Group, business leaders in the country – Mexican and foreign alike – are broadly positive about the outcome of the government’s package of structural reforms. Indeed, investor confidence remains high, with the vast majority of respondents planning to make a significant capital investment in the year ahead. However, with this expected increase in economic activity comes concerns about the availability of skilled labour and the need to improve the competitiveness of the tax environment to make the most of Mexico’s long-term prospects. 

 

Jaime Perez-Seoane de Zunzunegui
27 December 2016
Roundtables

Mexico is on track for a GDP growth rate of below 2.4% for the year 2016 according to the International Monetary Fund (IMF), while the Ministry of Finance and Public Credit’s growth estimations for 2016 are between 1.7 and 2.5%. Core inflation is at 3%, a figure that fits the Bank of Mexico’s target of between 2 and 4%. In the US, the Federal Reserve announced an increase of +0.25% from to 0.75 in interest rates before the end of 2016, alongside the election of Donald Trump, a top contributing factor influencing the strength of the Mexican peso. These indicators paint a pic- ture of an economy facing macroeconomic risks including the potential devaluation of the peso, a higher inflation, an expected increase in public debt and rising interest rates.