Mexico’s Recovery, Remittances Record on the SpotlightBy Emilio Aristegui | Thu, 09/09/2021 - 18:28
President Andrés Manuel López Obrador announced a new remittances record for the month of July but latter faced credibility crisis as experts questioned his statement. Experts from Mexico’s private sector adjusted their forecast of GDP growth, which might mean that the country is set for a long-term economic recovery.
Ready? This is the week in Finance!
President López Obrador announced that remittances had an all-time high in July, “Historical remittances record in remittances, historical record in foreign investment.” However, Jorge Andres Castañeda, Director of Applied Research at Mexicanos Contra la Corrupcion y la Impunidad, believes otherwise, “The figures are very disconcerting and do not add up.”
Karel van Laack, President and CEO of Atradius, shared with MB some of the main differences between how businesses work in Mexico and the Netherlands. “Mexico is a unique country, but we can compare it to how we operate in the Netherlands. In the Netherlands, companies sell on credit and they ask if credit insurance is in place before even considering shipping the goods.”
Santander announced its new credit card LikeU, which offers six credit cards that can be obtained entirely online. According to Santander’s press release, “LikeU is the first credit card that can be fully personalized by cardholders to select from the app the benefits, services, insurance and assistance they want for as long as they need it.”
Private sector experts announced the decrease in expectations for Mexico’s GDP through a recent Banxico press release, “Real GDP growth expectations for 2021 decreased in relation to the previous month, although the corresponding median increased. By 2022, perspectives on this indicator remained in levels close to those of the July survey.” Though the expectations decreased for the short-term, Mexico still looks set for a long-term recovery.
Alejandro Valerio, Associate Practice Leader Mexico and Central America of FrontierView, delineated for Mexico Business some of the main challenges for Mexico as 2022 approaches. “The country’s economic recovery will continue in 2022 mainly on the back of exports to the US. However, we should expect an uneven recovery across industries and segments amid a challenging operating environment.” Some industries will benefit but others will only recover in the long term.