Remittances / Banamex Purchase

Remittances. President Andrés Manuel López Obrador said that by 2023, remittances are expected to reach MX$60 billion (US$3.46 billion). "This is a record. It is always on the rise. There has never been a decrease. In July, we have an estimate of MX$5.73 billion (US$330.74 million), which will be an 8 percent increase."

According to Banxico, the country became the second largest recipient of remittances in the world. In 2022, there was a 13.4 percent increase in remittances compared to the US$51.586 billion received in 2021. In May 2023, US$5.693 billion were received, the highest figure on record. Officials said this amount exceeded expectations, given fears of a slowdown in the US economy.

Mexican Economy. López Obrador highlights that the Mexican economy is recovering after the COVID-19 pandemic. He expects that by the end of his administration, the country's annual growth rate will be 1%. "The economy is growing. We fell 8.2% with the pandemic, but we are coming out. The average annual growth rate is currently 0.7%, but my goal is to reach 1% per year. That will be quite a feat.”

The International Monetary Fund (IMF) upgraded its projections for Mexico's economy in 2023, forecasting a 2.6% growth in GDP. The fund had previously predicted 1.8% growth in April. The new rate is close to the 3% forecasted by the Mexican Ministry of Finance and Public Credit (SHCP). This upward revision is underpinned by two key factors: a solidifying recovery in the services sector, which had been lagging due to the pandemic's aftermath, and the positive impact of resilient demand from the US propelling Mexico's economic expansion. 

Banamex Purchase. López Obrador said the government will not acquire Banamex.  "At the beginning, we were interested in doing so because it seemed important to us to have a bank for government accounts and to save us from paying commissions. Also, because we would make Banamex's cultural heritage stay in our country. However, time passed and there were many interested in acquiring Banamex, which made the process difficult.”

So far, Citigroup has valued Banamex at US$12 billion. However, the offers received, including Grupo Mifel's, are well below this amount. Grupo México, one of the largest copper producers in the world and the main one in Mexico, is considering acquiring Banamex. The purchase would increase the company's financial capacity, boosting its mining, infrastructure and transportation operations. Previously, the president said there could even be a public-private partnership to acquire Banamex.