The strength of the Mexican economy

The Mexican economy is extremely strong, and its medium- and long-term prospects are positive, despite a global recession and the uncertainty of short-term trade disputes. The expectation is that, ultimately, Mexico will have comparative advantages over other economies, with no tariffs on exports to the United States. This will allow for greater development in sectors such as pharmaceuticals, semiconductors, electronics, and medical devices.

Other more traditional sectors, such as textiles, footwear, and even household appliances, also have very good prospects for exports, but also for recovering the domestic market they have lost to imports from Asia. This is why the exchange rate is strong and the continued interest in investing in the country remains.

An important ingredient of this confidence lies in the commitment to stable public finances. Debt limits as a proportion of GDP remain in place, lower than in most economies, and tax revenues are increasing. The Mexican economy offers economic, but also political and social, stability thanks to a broad system of social support, which serves as a minimum income, and job security that has increased workers' incomes. This has helped consumption, in the face of external shocks, contribute to growth.

Growth will resume in the short term, as trade uncertainty dissipates, which is already beginning to happen. The impending revision of the North American Free Trade Agreement in the coming months will serve that purpose. That's why it's important, at this time, to maintain stability and create the conditions for accelerating investment.

In this regard, the government is working on a portfolio to facilitate investment, on development centers to support regions, on mechanisms to replace imports of final goods and intermediate inputs, on sectoral development policies, and on promoting credit under accessible conditions.

President Sheinbaum's stance on the trade war has been one of prudence, dialogue, intelligent negotiation, and the pursuit of solutions to strengthen the country's domestic economy. In the short term, significant investments in energy will materialize, thanks to new legislation, which provides clarity, promotes the energy transition, and strikes a balance between public and private investment.

Public investment projects with a significant impact on aggregate demand, such as passenger trains, are also being discussed. Every week, the president announces new private investment projects, which are being realized thanks to the confidence in the country and the government's proactive work to attract investment and facilitate its implementation.