In recent years, Mexico has underperformed in terms of economic growth and has struggled to recover the size of the economy before the pandemic, even more so than other similar countries.
According to World Bank data, in 2022, the Mexican economy is set to register a growth of 3.1%, down from 4.7% in 2021, after a sharp decline of 8% in 2020, due to the onslaught of COVID-19.
What economic model does Mexico need to accelerate growth and make it sustainable? The answer lies in a strategy that meets three characteristics: being sustainable, being resilient and being inclusive, says Pamela Diaz Lobate, Mexico economist at BNP CIP. As such, it will favor economic growth over the long term, it will be reactive and able to change in the face of shocks, and it will create growth opportunities for all.
Jessica Roldan Peña, chief economist at Casa Bolsa Finemex, agrees. Experts highlight, during the forum “Influential Economists of Mexico 2023”, that the Mexican economy needs principles in order to have an environment of sustained growth.
“Years of shock have created a lot of noise in the decision-making of all economic agents. The economy must have clear rules that allow a fair strategy, solid institutions that are above governments and that cover all decisions; laws A rule of law that commands, and gives consent to decide which are the most important problems and the role of the state to solve them”, he explains.
For his part, Gabriel Casillas, chief economist for Latin America at Banco Barclays, highlighted that in order to uphold the rule of law that drives economic growth, it is necessary to dignify the work of police and increase judges. Is. Furthermore, all sectors of the economy operate under the same logic.
“For many years, with free trade agreements, we’ve worked with market logic, and energy hasn’t. Because energy is such a relevant aspect, it needs to work with that logic. Past administrations Significant steps had already been taken in the U.S., but at present it has gone backwards,” he points out.
Sergio Kurzin, director of Citybanamex’s Department of Economic Studies, shared that the pillars of development in Mexico have weakened in recent years, such as the liberal democracy in which progress was made, and that the country needs to rethink its strategy to fight poverty. is required. ,
They agree that addressing these challenges is essential to make the most of the opportunities for development, such as those represented by nearshoring for our country. The relocation of production chains means the arrival of new investments for the Mexican economy and business opportunities for more companies operating in the national territory.
Jose-Oriol Bosch, general director of the Mexican Stock Exchange, shared that the numbers are already reflecting the impending wave. “We are seeing this through products from real estate firms, some actions which are more in the industrial part. To give an overview: this year the amount of long-term debt financed in the stock market for projects, development plans and expansion has more than tripled in the first five months of 2023 compared to the same period of the year. past,” he says.
Regardless of interest rate levels, he points out, opportunities are being developed that may or may not yield higher returns than financial investments in any other instrument of government debt.
economist for better decision making
Mexico has been on a historical quest to find the keys that allow it to maintain itself as a major economic agent. Its challenges in this area are huge, so economists play a key role here in order to create real solutions to specific economic problems: inequality, poverty, public policies, and social development.
Forbes Mexico, with the support of Banco Sabadell, celebrates the role of economists in the country’s development. The “Most Influential Economist in Mexico”, in its first edition, is born from the vision of Forbes Mexico to further diversify its editorial proposals and add more value to its audience.
In this way, they recognize the role of 20 prominent economists, including Valeria Moy, General Director of the Mexican Institute for Competitiveness; Gabriela Siller, Director of Economic Analysis at Grupo Financiero Base; Jonathan Heath; Deputy Governor of the Bank of Mexico; o Rodrigo Brand de Lara, Deputy Director General of Studies, Strategy and Public Affairs of Grupo Financiero Santander México.
For Jose Iragorri, deputy director general of C&IB at Banco Sabadell in Mexico, the work that economists do every day is to understand and better understand the different factors that influence the growth of industries, which is fundamental in the decisions of each organization. “I can’t imagine banking without economists,” he says.
“Most decisions, especially the most important ones, lie with the economist,” says José-Oriol Bosch. As head of markets at JPMorgan, economists’ opinions were transmitted to clients and “I got to shake hands with economists.”
See full list of “Most Influential Economists” and all info Here,