Mexican Economy Records 1 Percent Growth: INEGI

Despite the complex economic outlook and high interest rates and inflation, the Mexican economy grew by 1 percent in August 2022, reports the National Institute of Statistics and Geography (INEGI). 

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Mexican Economy Progresses Slowly

Mexico’s tertiary and primary activities recorded minimal growth in August 2022 in comparison to the previous month, reported INEGI.

“By component and with seasonally adjusted data, in August 2022, the monthly variation was as follows: primary activities increased 3.6 percent; the tertiary, 1.2 percent and the secondary ones did not present change,” reads INEGI’s press release.

Managing Financial Tools Through High-Inflation, High-Interest Environments

Growing tensions between the US and Russia and high inflation has led central banks to raise interest rates at historic levels, explained Erez Saf, President, Pymes Capital. To properly manage the current global challenges, Saf urged businesses to try different financial tools that are more resilient for this difficult period for the global economy.  

“Money on hand loses value, while product costs, expenses and prices rise. Different loans and debt facilities are best positioned for this environment, such as factoring, MCA and fixed interest rate loan facilities. Of course, there are still other activities that need to be taken care of. I am hoping that these tools will help any company thrive in the turbulent times to come,” said Saf. 

Consumers and Merchants Can Thrive with Digital Solutions

The COVID-19 pandemic led thousands of businesses to adopt technological solutions to resist the strict sanitary measures. Jaime Marquez, New Business Director, STP explains that the pandemic forced SMEs to adapt and develop new digital solutions for their customers. 

“The adoption of digital media to conduct payment transactions is on the rise globally. Between 2018 and 2019, cashless transactions increased by almost 14 percent, mainly due to the increase in the use of digital media in China and India, resulting in 708.5 billion digital transactions, the highest growth recorded in the last 10 years,” said Marquez.