Mexico will Allocate Resources to Impulse Supply Chain Relocation
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Mexico will Allocate Resources to Impulse Supply Chain Relocation

Photo by:   Image by makabera from Pixabay
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Emilio Aristegui By Emilio Aristegui | Junior Journalist and Industry Analyst - Tue, 03/21/2023 - 16:41

The Ministry of Finance and Public Credit (SHCP) explained that Mexico is at an advantageous position to benefit from the global relocation of supply chains. The ministry seeks to pour investments toward the modernization of key infrastructure for the arrival of foreign investments. 

Rogelio Ramírez de la O, Minister of Finance and Public Credit argued that the relocation of supply chains to Mexico is now a “reality” during the inauguration of the 86th Banking Convention in Merida, Yucatan, which was inaugurated by President Andrés Manuel López Obrador. 

Ramírez de la O highlighted that Mexico has strengthened economic integration with the US and Canada, which he attributes to the consolidation of Mexico’s productive profile and the arrival of strategic investments. He also explained that the goal is to consolidate Mexico within the dynamics of global value and production chain relocation, which forces the country to review its public and private policies for productive development. 

Many companies have recently announced major projects in Mexico. For example, Tesla will install a Gigafactory in Nuevo Leon that is expected to create 35,000 new jobs. The company is expected to invest over US$10 billion in the plant’s different stages, says Samuel García, Governor of Nuevo Leon, as reported by MBN.

Estimates indicate that joint efforts between the public and private sector for the relocation of value chains have the potential to raise Mexico’s GDP by 1.2% and grow the industry by 30% during the next four years. Ramírez de la O said that the south-southeast region of Mexico will be included in the productive chain, which will not be limited to the traditional poles of industrial development. Mexico will pour investments to improve and build customs, ports, communication routes, energy infrastructure and the construction railways, he added. 

Ramírez de la O also highlighted Mexico’s prudent management of public finances, which will allow the federal government to allocate more resources toward strategic sectors and projects. He explained that budget spending on infrastructure has reached an all-time high.

“Although there are areas of opportunity in the construction of the country that we want for future generations, today they are within our reach and we must reach them. To achieve this, we are convinced that banking is a fundamental piece to place ourselves on the development trajectory that Mexico demands,” said Ramírez de la O via an SHCP press release.

Photo by:   Image by makabera from Pixabay

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