Mexico’s energy sector has been undergoing a profound paradigm shift since a reform programme, launched in 2013, put an end to state monopolies in most subsectors and began the process of opening the production and distribution of oil, gas, petrochemicals and electricity to private investment. In parallel, the entire legal, regulatory and institutional framework is being transformed to oversee new…
Despite challenges, and as the Mexican insurance sector laboured to meet new reporting standards, signs of strength have been showing in terms of profitability and premium growth. As rising costs were passed on to clients due to the weak exchange rate, some segments – notably health – have seen a rise in premiums. It is expected, however, that regulatory reforms will ultimately limit the rising…
Mexico’s capital markets are tightly regulated, but this has not greatly hampered innovation, with a number of new financial products becoming available to investors in recent years. The sovereign bond market has been particularly well developed over the past two decades, while corporate bond issuances have also been increasing, particularly among leading parastatal companies, such as the state-owned…
For more than two decades Mexico’s banking sector has been characterised by sound regulation, high capital adequacy ratios and strong profitability. Having learned from previous experiences, the Mexican banking sector emerged relatively unscathed from the 2008 global financial crisis. Since then, lending growth and profitability have picked up, despite a relatively sluggish economy, as has the sector’s…
From being relatively closed and heavily dependent on oil exports to drive growth and accrue foreign currency, Mexico has progressively liberalised and integrated into regional and global value chains. Although economic openness left Mexico more exposed to the global financial crisis than some of its Latin American peers, its economic profile has since allowed it to bounce back as global trade and…
At a time when a number of major Latin American economies, including Brazil and Venezuela, are heading toward recession, Mexico’s economy stands out in the region for its resilience. Projections for 2017 are couched in more uncertainty than is usual, however, in light of the lack of clarity over and the potential impact of policy changes in the US during the first year in office for US President…
What are the key factors and points of improvement that are needed to stimulate growth in the transportation and logistics sector in Mexico? MAURICIO GARZA: Mexico faces a great challenge in improving its logistics sector. Today in Mexico, logistics costs are twice that of other developed nations; hence there is an urgent need to improve the rail and road network. About 86% of the roads in Mexico…
In English La incertidumbre sobre la política estadounidense este año, incluyendo las propuestas para imponer tasas a las importaciones, probablemente afectará a la inversión extranjera en México, aunque esto podría compensarse a medio plazo por el interés de inversionistas de otros países. Según un informe de mediados de febrero realizado por la Secretaría de Economía, la inversión…
In English Con las tasas de índice de acceso al Internet y el interés de los grandes minoristas internacionales en aumento, las perspectivas de comercio electrónico parecen prometedoras a pesar de la incertidumbre sobre el cambio de políticas en los EE.UU. Un informe emitido en 2016 por la consultora AT Kearney concluyó que México estaba preparado para un auge del comercio electrónico…
What is the new reality for today’s global oil sector? LUIS VIELMA: This new era started with the sharp drop in global oil prices in the second half of 2014, and the prices have remained low in 2015, not climbing back up significantly. This presents us with a $40-per-barrel world, with prices oscillating between $40 and $50. It is difficult to envision the price exceeding the $50 mark in the next…
