Governance Concerned Entrepreneurs and Analysts

In its quarterly report April-June 2019 published yesterday, Banxico reduces the growth estimate for 2019 from a range of 0.8-1.8% to 0.2-0.7%.

By 2020 it adjusts it from 1.7-2.7 to 1.5-2.5%

The risks you see for the 2019-2020 Growth Scenario are

Down:

• Uncertainty about trade disputes worldwide.
• The ratification process of the T-MEC is extended in the United States and Canada.
• Episodes of volatility in international financial markets.
• Greater slowdown than expected in the global economy and trade.
• Internal uncertainty that has affected investment and consumption.
• Additional deterioration in the rating of sovereign debt or Pemex.

.

On the Rise:

• That the T-MEC be formalized.
• Dynamism of industrial production in the United States greater than anticipated.
• Aggregate demand dynamism greater than expected.
• Boost for the measures announced by the SHCP.

The report indicates the factors that businessmen and analysts consider could limit growth, among which those related to governance stand out.

He concludes by pointing out that it is necessary to strengthen the rule of law to foster an environment of certainty and trust, which would encourage investment and allow greater growth to be achieved for the benefit of all Mexicans.