WTO Expects Global Trade to Slowdown in 2023

Global trade is expected to slow down in 2H22 and to grow only slightly in 2023, according to the World Trade Organization (WTO). In Mexico, the Ministry of Finance and Public Credit (SHCP) signed new alliances to fight the country’s rising inflation. Meanwhile, investment group Arkangeles held an event to boost participation of female investors, while GBM launched a new platform to provide hybrid financial advice. 

Ready? This is the week in finance:

GBM Launches “GBM Advisors” Platform

The new platform aims to provide technology-supported financial advice to enhance investments. GBM also published a study commissioned by EY-Parthenon of the investment landscape in Mexico, which shows a growing preference for hybrid models where both advisors and investors can have "on-demand" finance management services. Financial advising will be an in-demand career in the future, according to Alicia Arias, Director of Acquisition, GBM. 

The Road to Financing in Mexico

“Nowadays, only 35 percent of the businesses in Mexico have access to formal financial products. Many companies do not take on debt because of the mistaken thinking that debt is bad or because they believe, erroneously, that they do not need it. This is one reason behind the low market penetration of these products,” said Fernando Padilla, CEO and Founder, Pretmex y Landera. 

Increasing Women Participation in the Mexican Economy

A study by the Mexican Institute for Competitiveness (IMCO) indicated that only 26 percent of working women in Mexico are entrepreneurs, totaling 4 million women, with 82 percent working in the informal sector. To increase female participation in the Mexican economy, Arkangeles held its first ArkWomen Event to focus on the needs of the female entrepreneurial ecosystem. 

SHCP Fights Inflation Pressures

Rogelio Ramirez de la O, Mexico’s Minister of Finance, asked businesspeople, food producers and retailers to maintain their prices until Feb. 28, 2023 as part of a plan to fight inflation. The ministry aims to extend the Anti-Inflation and Deficiency Package (PACIC) by leaving the cost of the Mexican basic food basket at MX$1,039 (US$51.87).

Ualá Receives US$150 Million Investment

Over the next 18 months, Ualá will receive a US$150 million investment to expand its presence in Latin America, said the company during the celebration of its second anniversary in Mexico. The company assured that Mexico is its next “big bet.” 

"Ualá was born to revolutionize finance in the region, making it more modern, more transparent and more inclusive. Creating a regional company that employs over 1,500 people with more than 5 million users in Latin America is a dream... Our next five years will be much more ambitious," said Pierpaolo Barbieri, Founder and CEO, Ualá, in a press release.

WTO Expects Minimal Global Trade Growth

WTO economists downgraded their expectations for global trade. “Import demand is expected to soften as growth slows in major economies for different reasons... Finally, growing import bills for fuels, food and fertilizers could lead to food insecurity and debt distress in developing countries,” reads WTO’s press release.