Inflation Climbs to Record Highs: INEGIBy Emilio Aristegui | Thu, 08/11/2022 - 10:00
Mexico continues to face tremendous inflationary shocks that continue to constraint its economy, which might lead its Central Bank (Banxico) to raise interest rates by 75 percentage points.
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Mexican technology startup and unicorn Clara announced the approval of a US$50 million financing line from Goldman Sachs, which can be increased to US$150 million. The financing plan aims to support Clara’s rapid growth. The company currently works with over 5,000 companies in Mexico, Brazil, and Colombia and aims to double this number by the end of the year.
“This financing will fuel our expected regional growth and allow us to make our expense management platform and our innovative short-term liquidity solutions available to more companies in the region. This new line of credit will allow us to double our presence in Mexico, while allocating resources to our regional expansion and new product development,” said Gerry Giacomán Colyer, CEO and Co-Founder, Clara.
The National Institute of Statistics and Geography (INEGI) announced that Mexico’s inflation rate reached 8.15 percent in July 2022, increasing from the previous month’s 7.99 percent. INEGI also reported that core inflation increased by 0.62 percent in June and non-core inflation by 1.09 percent. The last time Mexico registered similar rates was in 2000, potentially leading Banxico to increase its interest rate by 75 percentage points.
Ten companies will participate in 500 Global’s Batch #16 of the “Somos Lucha” program. The US 500 Global firm registers more than US$2.8 billion in assets.
The awarded Mexican companies include: Avioneta, a monthly subscription for people who want to manage their alcohol dependence; ConfiAbogado, an online law firm that provides legal solutions to low-income people; Gloset, a second-hand marketplace for formal clothing; Sapiens Medicus, an online medical education platform with personalized content and virtual reality simulation; and Scouter, a marketplace that allows clients to rent any space or location for filming and events.
Latin American Economies at Risk; Investment Could Help
Several economies in Latin America will most likely face upward challenges in 2022 as the war between Russia and Ukraine increases oil costs and global inflation. The conflict continues to affect global growth, which is now estimated at 3.3 percent.
“As the CEO of an investment fintech company, I cannot stress enough the multiple benefits that investing has for the population around the globe. Today, many people are hesitant when it comes to investing. Micro-investing might just be the answer regardless of our goal,” explains David Gobaud, CEO, Passfolio.