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News Article

SEC: Public-Private Synergy Needed to Boost Economic Growth

By Cinthya Alaniz Salazar | Tue, 06/21/2022 - 09:42

Crippled by supply chain shortages and inflation, Mexico’s economic recovery continues to sputter. To thwart this economic stagnation, Minister of Foreign Relations Marcelo Ebrard announced ambitious plans to support the synergy between public and private sectors to foment Mexico’s international competitiveness, according to a press release.

"If, with this, Mexico manages to achieve greater growth, the impact on the growth of the Gross Domestic Product could be very important, difficult to quantify at this time, but we can do it for the next meeting of the forum," said Ebrard during the Forum to Accelerate Synergies between Startups, the Tech Sector and the Government (FASSST).

This announcement comes almost three weeks after Mexico’s central bank, Banxico, slashed its growth forecast for this year and next, from 2.9 percent to 2.4 percent for 2023. Meanwhile, the bank maintains its inflation projection from its May policy meeting, which anticipated inflation slowing to 3.1 percent in the first quarter in 2024. As a result, the bank sees gross domestic product expanding 2.2 percent for this year based on its quarterly inflation report. 

These cumulative macroeconomic conditions have set off alarm bells. At FASSST, government officials and over 50 CEOs from all industries gathered to discuss what is needed to reinforce Mexico’s international competitiveness to foment greater foreign investment. Across three plenary meetings and nine simultaneous roundtables, leaders discussed Mexico’s international competitiveness, digital governance, teleworking and investments in education and health.

"This is an initiative that emerged from the need to talk, reach agreements and understand what we need to accelerate the country’s economic development; that is the question and you are an important part of the answer,” said Ebrard.

As the forum unfolded, the Ebrard pointed to the possibility of using the dialogue to inform shared policy and developing a “joint program with the [Ministry of Economy] and other government agencies to step up the pace.” Furthermore, the Minister also pledged to facilitate the business executives “presence abroad [to] accelerate Mexico’s economic growth.

The data used in this article was sourced from:  
SEC, Banxico
Cinthya Alaniz Salazar Cinthya Alaniz Salazar Journalist & Industry Analyst