Interview:President Enrique Peña Nieto How would you describe Mexico? PRESIDENT ENRIQUE PEÑA NIETO: Mexico is one of the world’s largest economies, with a population of over 119m people and a GDP of $1.2trn. Our country has benefited from a stable macroeconomic environment for years and remains one of the most open economies in the world. Mexico is also a country of hardworking people;…
Interview:José Antonio Meade Kuribreña What are Mexico’s foreign policy priorities in terms of security and economic development? JOSE ANTONIO MEADE KURIBRENA : Economic development and security are two of the five pillars of President Enrique Peña Nieto’s government, and therefore priorities for our foreign policy. We work closely with many countries on these issues. As part of a multi-thematic…
Interview:Luis Videgaray Caso Real GDP growth was 1.1.% in 2013. What have been the main factors behind this figure? LUIS VIDEGARAY CASO: GDP growth in 2013 was 3.1% (or 1.1% in real terms), less than had been projected. This was a result of both external and internal factors. A global slowdown contributed to a reduction in Mexican exports, while internally the construction sector’s performance,…
Interview:Francisco González Díaz How are the government’s structural reforms expected to impact the economy? FRANCISCO GONZÁLEZ DIAZ: The structural reforms approved in 2013 seek to increase productivity, acting as a lever for growth and attracting larger flows of foreign direct investment (FDI). The financial, telecommunications and energy reforms are key examples of what our strategy…
Interview:Ildefonso Guajardo Villarreal How can the economic integration of North America be reinforced to increase its competitiveness? LLDELFONSO GUAJARDO VILLARREAL: When the leaders of North America met in Mexico in February 2014, they reaffirmed their commitment to making North America the most competitive region in the world. Mexico, the US and Canada are working on an agenda to deepen…
Interview:Alejandro Valenzuela del Río To what extent can financial reform help to increase credit penetration? ALEJANDRO VALENZUELA DEL RIO: The level of loans issued by commercial banks to the non-financial private sector is equivalent to 15% of GDP. This is not only significantly below developed economies’ standards, but also below the credit ratios of emerging markets. In Peru the figure…
Interview:Luis Téllez Kuenzler Why was there a record number of new listings in 2013, a year of economic slowdown? LUIS TÉLLEZ KUENZLER: Mexico already has a very solid base of institutional investors in pension funds and investment funds, which have over $150bn and $160bn, respectively, under management. This base was non-existent 15 years ago but is now a mainstay of our capital markets.…
Interview:Ernesto Mariano Hernández What are the advantages and disadvantages of the auto market’s reliance on the US? ERNESTO MARIANO HERNÁNDEZ: The ratification of the North American Free Trade Agreement (NAFTA) marked an important turning point in manufacturing and exports, where Mexico became an attractive location for car manufacturers to establish themselves and, subsequently, supply…
Interview:Xavier García de Quevedo Topete How much will increasing the royalty tax to 7.5% impact foreign investment? XAVIER GARCÍA DE QUEVEDO TOPETE: Two years ago, Mexico ranked as the best location for exploration in terms of the investment risk for mining, but the new royalty will constrain competitiveness on a global scale. On top of that, the fall in prices of silver, gold and copper…
Interview:Louise Goeser How significant will energy reform be to industry, and is there a drop in energy costs on the horizon? LOUISE GOESER: While oil and gas have been at the forefront of energy reform, one of the key needs in Mexico is to become more competitive in the cost of electricity. Despite the country’s competitive advantages: one of the biggest impediments to growth has been the…
