The government’s priority President Andrés Manuel López Obrador To prop up economic growth, it must be investment, an item that had already been hit since before the outbreak of the Covid-19 pandemic, said Alberto González Pandiella, analyst for Mexico of the Organization for Economic Cooperation and Development (OECD).
“In order to strengthen the recovery, we see it as essential to start the investment engine that he was already weakened before the pandemic. Without starting the investment engine, it will be difficult to achieve high growth rates, “he said in a virtual conference with the media.
This Wednesday, the OECD officially presented the update of its flagship report “Economic Outlook” where he lowered his expectations for the country’s Gross Domestic Product.
“The main reason (for our review) has been that, for the third quarter, we expected a slowdown in growth, but we did not expect that there would be a contraction of the economy as it occurred. There, we believe that the restrictions of the value chains hit Mexico harder than we thought ”, he explained.
The organism expects the Mexican economy to close with a growth of 5.9% in 2021 and has a 3.3% expansion in 2022, according to the December update of its outlook report.
This reflects a deterioration from previous expectations. In September, the agency expected a growth of 6.3% for 2021 and 3.4% for 2022. For 2023 the growth forecast is 2.5 percent.
The great priority is to start the investment, “he said. “The great challenge, without a doubt, is investment,” he insisted.
According to Gozález Pandiella, inflation (which is currently around 7% per year) is expected to begin to moderate in the second quarter of 2022 and this is largely due to the gradual increase in interest rates that has been putting the central bank is marching.
Reference-www.eleconomista.com.mx