The Russia-Ukraine war continues to affect the global economy, affecting numerous economies including Mexico’s. The Latin American country is also seeing higher inflation rates following China’s recent COVID-19 lockdowns.
Mexico has poured strong investments in domestic travel since 2020 to promote the country’s economic reactivation and tourism, which are beginning to pay off. Between Jan. and Feb. 2022, 14.6 million passengers took flight, an increase of 78 percent, in comparison to 2021, reports the Federal Agency of Civil Aviation (AFAC). However, Russia’s invasion of Ukraine, rising inflation and ongoing COVID-19 lockdowns in China have deteriorated the global outlook for travel.
About 80 percent of CEOs believe that the role of the CFO will increase significantly, according to the Association of Accountants and Financial Professionals in Business (ACCA). Under these circumstances, modernizing the role through cutting-edge solutions for financial teams is a sound strategy to simplify work and accelerate processes, said Alejandro Zecler, CEO and Co-Founder, Mendel.
“The lack of innovation in the function of CFO remains a major hurdle for a lot of corporations, preventing them from stepping into the modern world of corporate governance. In comparison with their peer CMOs and CTOs, enterprise CFOs have seen the least technological breakthroughs in recent years.”
The Ukraine-Russia war, China’s lockdowns to contain a new outbreak of COVID-19 and global inflation are affecting Mexican trade. “Inflation shock worsening, rate shock just beginning, and recession shock is looming,” said Michael Hartnett, Chief Investment Strategist, Bank of America. As inflation continues to affect the Mexican economy, the Ministry of Finance and Public Credit (SHCP) and the Bank of Mexico (Banxico) aim to implement policies to reduce its impact.
The co-chairs of the High-Level Economic Dialogue (DEAN) of Mexico and the US reviewed the mid-term achievements of DEAN, priority initiatives and linkages with relevant actors, while planning the annual meeting that will take place in the fall of 2022. “The DEAN promotes strategic economic and commercial priorities for Mexico and the US to promote development and economic growth, job creation, improve competitiveness and reduce inequality gaps in both countries.”