Mexico has missed two temporary events due to the change of course in its economic policy. The Trade War that prevails between the United States and China and the historic flow of capital injected by central banks to face the global crisis caused by the pandemic, agree economists from Banco Base, Finamex Casa de Bolsa and Monex.
The “tremendous” increase in maritime freight from Asia, and heading to that continent, would have been a perfect time for Mexico to attract productive capital and increase exports to the United States, said Gabriela Siller, Director of Economic and Financial Analysis at Banco Base .
“But it is not taking advantage of the management of (domestic) public policy that is impacting confidence on the Mexican economy and fuels aversion towards Mexico, in a kind of vicious circle,” he said.
Companies that intended to invest and reinvest their capital in Mexico are surely stopping, he observed.
In addition, the director of Economic Analysis of Finamex, Casa de Bolsa, Jessica Roldán, mentioned the institutional strength of the country as the pending issue that is also discouraging investors.
“There is an issue that raises questions about whether financial institutions will be strong enough. There is also the issue of the policies to be implemented in energy matters that are contributing to worsen the country’s growth prospects ”.
Government debt, safe
The Finamex expert warned that investors seek government securities because they are safe papers and will pay attractive returns over time, or because they are insecure and will receive high premiums that pay the risk of having them.
“In the case of Mexico, there must be a rearrangement. If they do not meet the characteristics that made Mexican paper a point of attraction for investments, with a firm step towards recovery and economic growth, expectations change and the paper becomes less attractive or they demand a higher premium, which compensates for more risk taken ” .
Reference-www.eleconomista.com.mx