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Mexican Secretary

They will have a minimal impact positive about the Mexican economy. The problems in the economy made the Banxico to relax its monetary policy in a decision, which although it was endorsed by the weakening of inflationary pressures has reinforced foreign exchange deterioration and its volatility, which has increased inflationary risks. To counter these risks, Banxico is making great efforts in the foreign exchange market, and from the month of October 2008, has been conducting important sales of foreign exchange to support the Mexican peso. To date, the entity already wearing sold more than $19,000 million of international reserves. Despite this, the Mexican peso continues to weaken and the exchange rate of the dollar has already exceeded the $15 barrier. That 2009 will be a very difficult year for Mexico, is something that already can not be avoided.

However, the Mexican Secretary of Treasury, Agustin Carstens quite rightly considered that this time of crisis is a time of opportunity also for Mexico. Is that the crisis has left to the discovered the multiple weaknesses of the Mexican economy. The economy of Mexico needs structural reforms to grow and this moment of crisis is propitious to perform them. The own Carstens confirmed that the federal Government has made contact with Congress to carry out the structural reforms that transformed the economy, increase potential growth and create enough jobs. Mexico needs reforms, but: what reforms are necessary in Mexico? For the Organization for cooperation and economic development (OECD), according to the report issued on Tuesday, the main focus of action raised is in education, since the educational level of the population is low (the country gained the lowest results among those who belong to the OECD in evaluations carried out by the Organization). OECD raises to strengthen technical and vocational education.

The OECD also raised other sectors requiring structural reforms. Among them is the sector of telecommunications that requires greater competition. Also Mexico to be targeting the electricity sector to strengthen it. The report drawn up by the OECD, moreover as follows with respect to Mexico: requires the Elimination of restrictions on investment in public works, increase the mobility of labour (which implies a greater flexibility in the labour market) and establish agreements for sharing risks and benefits with other companies, in order to gain access to the technology needed to increase production (the reduction of restrictions on foreign direct investment are here implied). Carstens coincides with the vision of the OECD, but also considers it necessary for the growth of Mexico, achieve the capacity of saving and improving the efficiency of the banking system. Perhaps something that has not been mentioned among the necessary reforms for Mexico appears the necessity of reducing dependence on the Mexican economy of American influence. Mexico should work to increase their external trade links to reduce the relative importance that has the American economy on it. The need for reforms in the Mexican economy is already raised. It only remains to know whether the Government of Felipe Calderon is willing to take them and, if positive, wide and deep will have. This possibility makes to raise me the following question is Mexico by initiating a process of far-reaching reforms to strengthen its economy and generate large investment opportunities?

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