5 positive and negative aspects of the Mexican economy for 2020
The president of Grupo Bursamétrica, Ernesto O'farril Santoscoy, analyzed the points to be considered in the economic arena of Mexico in 2020.
In an interview with Mario Maldonado in Bitácora de negocios, the president of Grupo Bursamétrica, Ernesto O'Farril Santoscoy, gave his analysis of the Mexican economic and financial outlook for 2020.
The specialist noted five negative or risk points that could affect the national economic development for next year among which stand out:
1. Deceleration of the U.S. economy
Factors such as the possible re-election of Donald Trump or even his defeat in the next election could trigger a slowdown in the U.S. economy and consequently affect the Mexican economy.
2. Reduction of Pemex and national debt ratings
The specialist said that a reduction in the rating of the debt by the rating agencies will affect the exchange rate, which will impact the economy.
3. Investment contraction
The lack of investment could generate zero growth because private investment is often the engine of national economies.
The growing crime rates in the country are the main obstacle to doing business in the country, the specialist said.
5. The weakness of the rule of law
Another of the country's historical slopes, said the president of Grupo Bursamétrica, which makes investors uncertain.
Despite these points, the expert said that not everything is bad because there are also five positive aspects that could help revive the Mexican economy.
1. Fiscal discipline
Although this government is described as populist, one of the areas that has remained stable is the fiscal, due to the measures adopted by this administration.
2. Family remittances
As in 2019, it is expected that in 2020 remittances will maintain their strength and continue to grow by 10% annually, since they are a factor that provides the country with around 33 billion dollars a year, which helps to strengthen the domestic market.
3. Wage policy
The most recent increase in the minimum wage will help strengthen the domestic market.
4. Infrastructure projects
Under this concept, it is expected to have the support of around 8 billion pesos.
5. Ratification of the TMEC
The ratification and entry into force of this agreement will provide the country with long-term certainty.
Source: El Heraldo de Mexico