The Banxico survey suggests analysts aren’t confident these issues will be addressed in a timely manner: 77% of those surveyed expect Mexico’s business climate to “get worse,” and 59% of respondents said it was a “bad time” to invest in Mexico.
As for Cepal, its year-end report to the United Nations says Latin America and the Caribbean face a complex panorama in the coming years.
“[T]he region’s economies will stay mired in a trap of low capacity for growth, with growth rates that will remain low and a growth dynamic that depends more on private consumption, and less on investment.”
José Manuel Salazar-Xirinachs, Cepal’s executive secretary, said that Mexico is particularly vulnerable because of Donald Trump’s threats to impose tariffs on Mexican imports to the U.S. once he is sworn in as U.S. president on Jan. 20.
Mexico sends 84% of its exports to the United States, and there is a high level of supply chain integration between the two neighbors.
“If Trump were to implement just a 10% tariff … exports and investments would be impacted, and we’d see Mexico’s GDP reduced by 0.8% to 1%,” he said.
With reports from El Economista and the World Bank
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Publish date : 2025-01-02 07:19:00
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