Mexico continues its long journey towards an economic recovery. This week, the country participated on the Pacific Alliance High-Level Dialogue to promote trade, Mexico City registered economic growth for a fourth consecutive quarter and the IMF praised Mexico’s rebound strategy.
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The Mexican fintech startup claimed one of the most successful rounds of financing in Latin America’s history, as it continues to seek ways to expand in and out of Mexico. “Only 15 percent of Mexican citizens have access to credit cards and most of them are high income earners. People should have other options to build a credit history,” said Marlene Garayzar, Co-Founder, Stori, during Mexico Business Forum 2021.
Cryptocurrencies and bitcoin are merging with the financial market at a rapid pace. The historic dependance on cash and payments in Latin America allows for major growth opportunities in the region. “These tools have changed the way people save and spend. While their role in disrupting the market is pronounced, they are still seldomly used by individuals,” said Adriana Villaseñor, Corporate Development Lead, Bitso.
Deutsche Markt Screening Agentur (DMSA) announced the start of a bankruptcy proceeding against the Chinese infrastructure giant. DMSA claimed that it had not received payments from Evergrande bonds and called for all board investors to join in on the bankruptcy proceedings. Marco Meltzer, Senior Analyst, DMSA, highlighted that the US Fed had warned of the catastrophic consequences the global financial system could face in case of a major collapse.
The International Monetary Fund (IMF) published a comprehensive analysis of the Mexican economy, indicating that the country has taken important strides towards a major recovery. IMF highlighted that the country is set to grow its GDP 6.2 percent in 2021 and 4 percent in 2022. However, IMF directors also recommended “a gradual, data driven pace of policy normalization that carefully balances support for the recovery while keeping medium term inflation well anchored.”
Mexico’s Ministry of Finance and Administration (SAF) highlighted that Mexico City’s economic activity grew for fourth consecutive quarters. Trade has been a major factor in the city’s success, with an expected growth of 6-7 percent in 2021. The capital’s economic strategy focused on fighting the COVID-19 pandemic by following the national vaccination plan. Mexico City registers a 95 percent vaccination rate, instrumental to the reactivation of its economy.
The four members of the Pacific Alliance met in Chile to discuss the upcoming plans to cement the group’s growth in the region. At the meeting, Mexico, Chile, Colombia and Peru analyzed the relationship with strategic partners such as the EU, Mercosur and ASEAN. Member countries, vice-ministers of trade, representatives of the Business Council and the Organization for Economic Co-operation and Development (OECD) agreed on the importance of facilitating intra-Pacific Alliance trade.