Mexico Sees Trade Boost; Public Debt Remains Stable in 2022
Mexico registered a trade surplus of US$984 million in December 2022, while its public debt decreased during 4Q22, standing at 49.4% of the country’s GDP. According to SCHP, the country’s economy surpassed the 2022 forecast with an overall growth rate of 2.9% as of November, driven by strong labor market, consumption and private investment.
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Afore Transfers Suspended Until March 2023
Due to ongoing losses in 2022, the National Commission of the Retirement Savings System (CONSAR) decided to halt pension funds (afores) transfers from Dec.16, 2022, to March 16, 2023. During this period, afores can still receive documents and start affiliation processes, which will be put on hold until operations are back to normal.
Mexico City Government Will Grant MX$2.4 billion FONDESO Credits
Underdeveloped zones in the Mexico City metropolitan area will receive MX$500 million (US$26.6 million) in Social Development Fund (FONDESO) credits to help residents enhance their businesses and auto-employment capabilities. The funds for social development were awarded to residents of Tlahuac, Milpa Alta and Xochimilco, as the program seeks to strengthen the neighborhoods farthest from the city center, highlighted Mayor Claudia Sheinbaum.
Mexico Had a Trade Surplus of US$984 million in December: INEGI
The country registered a trade surplus of US$984 million, an 63% increase when compared to the US$603 million obtained in the same period in 2021, according to the National Institute of Statistics and Geography (INEGI). However, the nation's trade balance deficit for 2022 was US$26.4 billion, exceeding the US$10.9 billion deficit of 2021.
Wallets and Integrated Finance to Boost Fintech Sector in 2023
Despite a decrease in investment in technology during 4Q22, the fintech sector in Mexico is expected to grow during 2023 thanks to the significant increase in the adoption of digital wallets and integrated financial services.
IMF Warns of “Runaway Fragmentation” in Global Economy
After decades of significant reduction in poverty, the global economy faces a potential policy-driven reversal of global economic integration, also known as geoeconomic fragmentation. “The unraveling trade links would most adversely impact low-income countries and less well-off consumers in advanced economies,” reads the Geoeconomic Fragmentation and the Future of Multilateralism report by the International Monetary Fund (IMF).
SHCP Reports Decrease in Public Debt During 4Q22
Mexico’s public debt in 4Q22 stood at 49.4% of the country’s GDP, reports SCHP. The ministry described the nation’s debt as “stable” thanks to the responsible and careful management of Mexico’s resources. According to SCHP, Mexico’s economy surpassed the 2022 forecast with an overall growth rate of 2.9% as of November thanks to the good performance of the labor market, consumption and private investment.
Prioritizing Migration to Accelerate Latin American Development
The Economic Commission for Latin America and the Caribbean (ECLAC) is pleading with nations to prioritize migration to transform the region’s development paradigm. Increasing national statistical capacity for population and housing censuses enables countries to produce the data and statistics required to develop better migration policies and initiatives.
ASOFOM Expands Network to Strengthen Latin America
The Mexican Association of Multiple Purpose Financial Companies (ASOFOM) announced it is entering the non-bank financial intermediary (NBFI) sector in Latin America. The financial assets placed by NBFIs account for around 8% of the total assets of the regional financial system, which presents a great opportunity to create synergies between Mexico and other nations.