Mexico’s economy is weathering the global environment with “new recovery pattern”, says minister

Mexico’s economy is weathering the adverse global environment, thanks to its fiscal and macroeconomic balances and to a “new pattern of recovery”, estimated on Tuesday by the Secretary (Minister) of Finance, Rogelio Ramírez de la O.

During the National Meeting of Regional Advisors of the BBVA Mexico Financial Group, the federal official said that the last three years have brought “somewhat unusual” international economic and geopolitical challenges.

In this context, consumption and investment have positioned themselves as the main drivers of recovery since the downturn in the economy caused by the COVID-19 pandemic in 2020, in a model less dependent on the course of the United States, he explained.

“The role of these two aggregates, consumption and investment, in the most recent recovery was preponderant, which contrasts with the dynamics observed in the subsequent recoveries of 1994 and 2009,” the minister indicated.

“Here we are deviating from that pattern, we are entering a new recovery pattern, and that is why consumption and investment play this role,” he added.

Mexico’s economy, he explained, continues to grow above its historical average and even accelerated its growth compared to the end of last year.

According to the minister, Mexico’s Gross Domestic Product (GDP) has a growth floor of 2.2 percent for 2023.

In the medium term, Mexico is the natural candidate to take advantage of the global relocation of companies; so far, in 2023, the country has announced investments by 20 companies for 13 billion dollars in the relocation of value chains, he said.

The Mexican economy, the second largest in Latin America after Brazil, grew 3.0 percent in 2022, according to revised official figures.

Private analysts consulted by the Central Bank of Mexico (Banxico) estimate that Mexico’s economy will grow 1.6 percent in 2023 due to an expected slowdown in the United States.

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