CCE Introduces Economic Reactivation PlanBy Cinthya Alaniz Salazar | Tue, 08/17/2021 - 10:01
Despite Mexico’s steadily improving market growth projections, its Business Coordinating Council (CCE) will submit an economic reactivation plan to the Ministry of Economy that promises to incentivize and reactivate investments. CCE is concerned with the country’s slow dynamism and aspires to raise GDP growth by 3 percent after 2022.
The twelve bodies of the CCE will meet with Tatiana Clouthier, the head of the Ministry of Economy, to refine the program submitted by the private sector, aiming above all to increase dynamic economic activity. The program covers 30 proposals ranging from accelerated depreciation (so as to increase investment), support for MSMEs through development banks, simplification of procedures and even high-level dialogues with the US to strengthen production chains affected by the COVID-19 pandemic, just to name a few.
“The idea is that (the plan) not only serves to support an exit from the (economic) crisis but also that it be sustainable in later years, seeking to achieve higher growth than currently forecast. To do this, it is being proposed that the GDP growth from 2022 onwards be between 2-2.5 percent for Mexico, but the measures would help to grow 3 percent and make it sustainable," reported a source from CCE.
As the nation grapples with a devastating third COVID-19 wave, reporting almost 25,000 new cases last Thursday, there is mounting concern that this will grind the national economy to a halt. For that reason, CCE’s program focuses on actionable changes related to foreign trade, paperwork and fiscal stimulus among others, CCE commented to El Economista.
The agency felt compelled to clarify that its program was just a proposal and that it should in no way be thought of a holistic approach, but nonetheless may have a significant impact on the economy. Additionally, the program does not consider costs, as it assumes that they will be compensated for by significant foreign investment.
Carlos Salazar Lomelín, President of CCE, stated that he was extremely concerned with Mexico’s apparent economic stagnation, especially considering that the US appears to be flying past. In his opinion, the program is within the capability of Mexico’s economy.