Anti-Inflationary Plan Raises Concern; Economy to Decelerate

This week, BBVA Research reported that the Mexican economy will face a deceleration in 2022 as inflation continues to be a concern. Meanwhile, the Business Coordinating Council (CCE) warned that the current anti-inflationary plan could affect consumers. 

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BBVA Expects Economy to Decelerate and Inflation to Stabilize

Mexico’s Central Bank (Banxico) has shown fierce commitment to stabilize prices in the country, as inflation continues to rise with increases in the prices of gas and raw materials. BBVA Research found that the Mexican economy will likely face a deceleration, and that economic growth will remain at 2 percent during 2022. The study also expects a downward cycle to appear in 3Q23, as policymakers continue to tighten finances. 

CCE is Dubious of President Lopez Obrador’s Anti-Inflation Agreement

Mexico’s CCE warned that the Federal Government’s Agreement to Strengthen the Package Against Inflation and Scarcity (PACIC), which was signed by 15 companies, contains flaws that will affect consumers if not properly managed. PACIC seeks to maintain the basic food basket at MX$1,039 (US$51.87) until Feb. 28, 2023, the Agreement is part of President Andres Manuel López Obrador’s plan to contain inflation in the country. 

A Winner’s Mentality for Business

Christian Jacobsen, Co-Founder & CEO, Crema, told MBN that entrepreneurs deal with losses continuously, and that the difference between those willing to compete and rise as entrepreneurs against the existing incumbent competitors lays on the ability to go full throttle. 

“You most certainly do not go into any situation with the mentality to lose. I think you should do anything to win. But, you should not let losing affect you, you should not let a punch affect you,” wrote Jacobsen.

Dealing with Online Payment Frauds

The boom in online sales has been followed by an increase in cyberattacks and online fraud. To prevent falling victim to fraud, Anna Aguilar Gallart, Growth Leader, Stripe, suggests allying with a reliable payment processor.

“Moving to online sales allows companies to increase their revenues and provides customers a frictionless way to shop. Sometimes people do not have the time to go to a store, so online shopping can resonate with those customers. Companies that want to start selling online do not need to create their website from scratch; they can leverage amazing e-commerce platforms,” said Gallart.