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Weekly Roundups

OECD Downgrades Mexico’s Growth Estimates

By Emilio Aristegui | Wed, 02/23/2022 - 15:48

Mexico continues to struggle with its economic growth and now faces stagnation, warned the Organization for Economic Co-operation and Development (OECD), which also decreased its growth forecast for 2022.

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OECD Reevaluates Mexico’s Economic Outlook

While Mexico is recovering from the profound economic and social impact of the pandemic, some sectors remain behind, warned the OECD. “Informal workers, women and youth have been particularly affected, compounding pre-existing social challenges,” reads a press release by the OECD.

The organization explains that Mexico's strong macroeconomic policy framework safeguarded macroeconomic stability. However, “medium-term growth prospects have weakened and the pace of growth over the last two decades has been low. Poverty and inequality between regions are still high. Factors such as informality, financial exclusion or corruption have hampered productivity growth. Low female participation rates and weak investment since 2015 have also affected medium-term growth prospects,” added the OECD.

Innovation Investments are Vital to Foster Financial Growth

Increasing investment levels is vital to create an abundance of capital that furthers problem-solving innovation. The increase in investment also allows the creation of jobs, economic growth and financial freedom by giving investors an opportunity to increase their wealth and improve their quality of life. “Everyone should educate themselves. Knowing where to invest is hard work. Understanding trends and changes in consumption patterns requires a lot of research, as well as a level of financial education,” said Luis Barrios, Founder and CEO, Arkangeles.

Is Web3 the Third Digital Revolution?

Web3 is still unknown to most people but its disruptive potential has led some to consider it the third digital revolution, said Mónica Martinez, CIO, Vector Casa de Bolsa. Investments on Web3 have surpassed US$27 billion, further lending credence to the claim that this technology is the future of the Internet especially as the evolution of speed and global scalability are extremely interesting attributes attracting investors.

CNBV Announces Adequate Bank Capitalization Index

The National Banking and Exchanges Commission (CNBV) announced temporary regulatory measures to incentivize commercial banks to grant credit. With this move, the CNBV is seeking to avoid triggering minimum corrective measures applicable by non-compliance with the conservation buffer. But Alain James, Economic Analyst, Signum Research explained that increases in interest rate loans affect the recovery and social welfare. Mexico’s capitalization index averaged 19.53 among the total multiple banking options in Dec. 2021.

The Importance of Diversity for Companies

Company leaders must identify individual needs in organizations to provide ways for employees to perform to the best of their abilities. “One of the most relevant aspects in building a company, either as a founder or as CEO, has to do with its culture. In today’s world, given massive flows of information, the ability that customers have to immediately access products and services and the low switching cost, companies may not have second chances in building up the customer relationship. This is where having a rich, diverse culture comes into play,” said Fabrice Serfati, General Partner and Managing Director, IGNIA Partners.

All-in-One Solution for SMEs

“The most common complaint from clients in the past was the long time it took banks to open accounts and authorize credit for SMBs,” said René Saul, CEO, Kapital. The company allows SMEs to easily adopt technology, strengthen their financial platforms and credit products to enhance their core business.

The data used in this article was sourced from:  
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Emilio Aristegui Emilio Aristegui Junior Journalist and Industry Analyst