Monday, February 26, 2024

Administration change and uncertainty worry Mexican entrepreneurs

In the middle of an election year in Mexico, changes in the federal administration, management, and continued uncertainty are the main concerns for entrepreneurs and their operations, a consulting survey firm, KPMG, revealed this Monday.

The survey, which included more than 900 executives from various industries in the country, showed that 58% of the participants saw a change in the federal administration as the reason with the greatest impact on their operations, despite a potential economic slowdown. .

In the race for victory in Mexico’s presidential election on June 2, Morena’s candidate, Claudia Sheinbaum, maintains a strong advantage over her main opponent, according to polls, which will point to a legacy from the current administration.

In addition, almost half of the executives consider that the most pressing risks for Mexican companies are the rule of law and uncertainty, and that these factors may have a significant impact on their strategies. .

“The anxiety seen by business leaders in Mexico about the risks of uncertainty and the rule of law increases, going from fourth place in 2023 to leading the fear of business leaders,” said Gerardo Rojas, lead partner of the KPMG Advisory Practice in Mexico and Central America, at a conference about the study.

Mexico has overtaken Brazil as the preferred location for investors and M&A activity, according to a 2023 survey.

“We got our attention that Mexico moved Brazil in preference. Historically, Brazil appeared as a preference,” explained Rojas, pointed out as the main reason for the trade war between the United States and China that gave way to nearshoring.

70% of those surveyed indicate that they will make new investments in 2024, and when looking to expand in the country, the majority point to Nuevo León as their destination, mainly because of its strategic location.

World Nation News Desk
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