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Mexican Companies Eye 2024 Election and Security as Key Risks

In 2024, Mexican businesses anticipate the presidential election and security issues as major risks.

These concerns, as reported by the Bank of Mexico, could impact the country’s economic performance.

Elections inherently bring uncertainty, which is common in such political processes.

Businesses are particularly worried about the prolonged impact of inflation and worsening public security indicators.

Adverse climatic events also pose a risk to regional economic activities, as per business leaders’ views.

In central and southern Mexico, executives note limited corporate credit demand due to the uncertainty of the upcoming election.

Mexican Companies Eye 2024 Election and Security as Key Risks - Monterrey. (Photo Internet reproduction)
Mexican Companies Eye 2024 Election and Security as Key Risks – Monterrey. (Photo Internet reproduction)

Additionally, increased security challenges have led to higher operational costs and affected the procurement of some financial services.

Specific issues like driver availability and highway security, especially from Mexico City to the Bajío region, are of concern in central Mexico.

In the north, businesses are delaying investments anticipating more political uncertainty. They also observe longer procedures in the public sector.

The north-central region emphasizes a decrease in public sector contracts for audits and advisory services.

In the South, the perception of insecurity continues to hinder new business and investment opportunities.

Banxico emphasizes the need for conditions conducive to investment and growth. Strengthening the rule of law and reducing operational costs for businesses are crucial.

Additionally, developing transport, hydraulic, and energy infrastructure is essential, especially in the south, to stimulate investment.

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