Mexico’s 1H22 Finances Strong; Banxico Presents 2Q22 ResultsBy Emilio Aristegui | Thu, 09/08/2022 - 10:00
Mexico’s Ministry of Finance and Public Credit (SHCP) explained that the country’s healthy public finances were a result of an adequate management of public debt, oil revenues, tax collection and responsible public spending.
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Mexico’s finances remain healthy as of July 31, 2022, reports SHCP, which attributes the country’s adequate performance to oil revenues, tax collection, responsible public spending and efficient management of public debt. SHCP’s Public Finances and Public Debt report registered that budgetary income in the country’s public sector surpassed expectations by MX$218.38 billion (US$10.38 billion), reaching MX$3.86 trillion (US$191.66 billion) from January to July 2022 in a 5.3 percent growth per year in real terms.
Mexico’s Central Bank (Banxico) conveyed adjustments in financial markets to help with Mexico’s economic stability, while performing strategies to maintain inflation expectations anchored for the long-term.
“In this regard, the Board of Governors of Banco de México determines its monetary stance with the aim of promoting an orderly adjustment of relative prices, financial markets and the economy as a whole, leading to the convergence of inflation to the target of 3 percent,” said Banxico.
The International Air Transport Association (IATA) estimates that Mexican airlines have lost 65 percent of their revenue, equivalent to US$9.32 billion, as a result of the Federal Aviation Administration’s (FAA) downgrade of the country’s airspace to Category 2. Mexico’s GDP is expected to suffer losses amounting to US$7 billion and the country will likely lose 170,000 direct jobs and 780,000 indirect jobs.
"Category 2 would put more jobs at risk and further decrease the industry's share of GDP. The assumed losses to the economy are far greater than the investment needed to meet the requirements set by the FAA," said IATA.
A study by the Inter-American Development Bank and Cambridge University found that fintech credit has allowed small and medium-sized enterprises (MSMEs) to gain resilience, maintain or increase jobs, revenue and sales. “The SME Access to Digital Finance Study” by the Cambridge Center for Alternative Finance (CCAF) at the University of Cambridge Judge Business School and the IADB explain that fintech companies are vital tools for enterprises to build resilience.
“The mission of all companies is to satisfy the needs of people or to find solutions to the problems that affect them, creating value in the market through the products or services we offer. This objective must also permeate our companies,” wrote Sergio Jiménez Amozurrutia, CEO and Co-Founder, Flink.