Seizing Upcoming Investments During Uncertainty

Minister of Finance Rogelio Ramírez de la O urged Mexican businesspeople to seize the opportunities created by the wave of investment brought by nearshoring. Meanwhile, Club América, one of Mexico’s most popular soccer teams, seeks to be listed on the Mexican Stock Exchange (BMV). Finally, the INEGI reported in its Timely Indicator of Economic Activity (IOAE) that the secondary and tertiary sectors of the Mexican economy grew, potentially forecasting economic growth.

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Banxico Raises Overnight Interbank Interest Rate to 11.00%

The Bank of Mexico (Banxico) increased the interbank target rate by 50 base points to 11.00%. While the US Federal Reserve (Fed) argues that Banxico will continue to raise its interest rates to tackle inflation, Mexico’s central bank said that future increases would likely be smaller. “We expect Banxico to continue limiting the pace of hikes in the target rate, taking it to a terminal level close to 11.00% in 1Q23, and we do not rule out a subsequent slight deviation from the Fed’s actions,” says Alejandro Saldaña, Chief Economist, Bx+ Financial Group, as reported by MBN.

Ramírez de la O Urges Companies to Take Advantage of Nearshoring

Mexico can foster long-term economic growth if nearshoring opportunities are taken advantage of, argues Ramírez de la O. During the presentation of Nafin’s and Bancomext’s financial programs, the minister urged businesspeople to seize the opportunities created by the new wave of investment. “In the face of the severe adversities that have hit us, Mexico has shown its ability to move forward if you have the will to do so. The country is experiencing a decisive moment in its development process, in which entrepreneurs play a vital role,” says Ramirez de la O in an SHCP press release. 

Club América to Go Public on the Mexican Stock Exchange

Club América, one of Mexico’s most popular soccer teams, seeks to be listed on the BMV. The move would make Club América the first Mexican soccer team to trade publicly in history. Televisa plans to spin-off its “Other Businesses” division, which includes Club América, casinos, sweepstakes, film distribution and publishing, to become more profitable and focus on its core business of TV, internet and content. Shares of Club América and Estadio Azteca will begin to trade independently from Televisa in about six months, according to GBM. This week, the media giant will present its financial report for the 4Q22, providing more details about the spin-off process.

Mexico’s Economic Activity Grew by 2.8% In January: INEGI

INEGI reported that Mexico’s secondary and tertiary sectors grew, propelling annual economic growth forecasts. The institute anticipates an increase of 2.8% in the Global Indicator of Economic Activity (IGAE) at an annual rate thanks to the growth in secondary and tertiary activities of 3.1% and 2.5%, respectively, in January 2023. IGAE grew by 0.2% from December 2022 to January 2023, according to its nowcasting model. During the same period, secondary activities presented the same growth rate of 3.1%, while secondary activities stood at 2.5%, increasing their growth rate by 0.4%.