Private Investment in Infrastructure Is Needed: Carlos Slim

Carlos Slim, Mexico’s richest man, said there is a lack of private investment in infrastructure, which prevents Mexico’s development. He also expressed his disappointment with the private sector for not supporting an increase in the minimum wage, reported La Jornada.

Slim met with Argentinean President Alberto Fernández and stated the importance of promoting private investment. Slim also pointed out how in 2020, Mexico’s economic performance turned out to be better than anticipated. The investment to meet consumer demands and the support given by the banks to businesses helped reduce economy losses.

The real estate sector also had a decent year in 2020 and the future looks stable and is also expected to perform better in 2021, thanks to an increase in warehouse demand and development of industrial parks due to the global pandemic.

Despite these positive forecasts, not everything is looking rosy for the real estate sector. In a recent interview with MBN, CEO and Latin America Chairman of JLL Pedro Azcué said that due to  safety protocols, most retail spaces have seen a dramatic loss of traffic, which has led to rental contracts being temporarily renegotiated, including indefinite extensions. The hotel business might be the most affected. The cancellation of events and business trips has led to massive losses. Thankfully, banks have adapted to the crisis and have provided payments options for companies in the hospitality sector.

Slim also commented on the internal changes made by SMEs. He believes that through banking, these companies will overcome their liquidity struggles and start to recover from their losses. Despite the small but welcome good news for the economy, Slim expressed his disappointment toward businessmen that opposed the minimum wage increase of 2021, which was set at 15 percent, according to President López Obrador. The president also confirmed that the only things subject to inflation were cigarettes, sugary drinks and gasoline, as reported back in December 2020 by MBP.

Slim emphasized during his meeting with the Argentinean president that there must be investment in  infrastructure, as this can lead to more jobs, that often expand to different sectors including construction and housing.