{"id":19633,"date":"2018-07-12T09:36:09","date_gmt":"2018-07-12T14:36:09","guid":{"rendered":"http:\/\/www.basham.com.mx\/Blog\/?p=1421"},"modified":"2018-07-12T09:36:09","modified_gmt":"2018-07-12T14:36:09","slug":"mexico-investment-overview-after-2018-elections","status":"publish","type":"post","link":"https:\/\/basham.com.mx\/en\/mexico-investment-overview-after-2018-elections\/","title":{"rendered":"MEXICO INVESTMENT OVERVIEW AFTER 2018 ELECTIONS"},"content":{"rendered":"

Mexico Investment Overview After 2018 Elections<\/strong><\/p>\n

Andres Manuel\u00a0L\u00f3pez\u00a0Obrador\u00a0(AMLO) won the Mexican election and his party will\u00a0have the majority\u00a0in Congress, which may lead the country to relevant changes in Mexico\u00b4s policy and politics.<\/p>\n

What to expect?<\/strong><\/p>\n

L\u00f3pez\u00a0Obrador\u00a0promised quite ambitious social programs, assuring investors that he will exercise fiscal prudence and respect\u00a0the independence of\u00a0Mexico\u2019s Central Bank.<\/p>\n

The\u00a0people that\u00a0elected him\u00a0expect\u00a0quick results and proof on\u00a0the fulfillment of\u00a0his promises, starting with his anti-corruption agenda and increasing economic growth.<\/p>\n

The upcoming expected actions most likely\u00a0be:<\/p>\n

Cabinet nominations; propose the 2019 budget;\u00a0nomination of new board member of Mexico\u2019s Central Bank; and his approach to the North American Free Trade Agreement (NAFTA) and the energy industry.<\/p>\n

L\u00f3pez\u00a0Obrador\u00a0has insisted that he will like to\u00a0preserve\u00a0NAFTA and\u00a0maintain\u00a0good relations with the United States, working towards negotiations that will benefit both countries.<\/p>\n

Mexican policy makers are also preparing for a scenario without NAFTA. The European Union and Japan could be alternative markets as Mexican exports could become even more competitive, thanks to a cheaper peso and Mexico\u2019s other existing free trade agreements. With a unique geographic advantage, a free-floating currency that can adjust to make exports attractive, relatively cheap labor and competitive transnational supply and production chains, Mexico can\u00a0remain\u00a0competitive in the manufacture of goods in a post-NAFTA scenario.<\/p>\n

Lopez Obrador has insisted that during his government he will strength Pemex and plans to improve and build new refineries.<\/p>\n

L\u00f3pez\u00a0Obrador\u00a0has also declared that the main\u00a0objectives\u00a0of his government will be:<\/p>\n

In the fiscal sphere,\u00a0L\u00f3pez\u00a0Obrador\u00a0committed not to raise taxes, and to finance higher social spending with a reduction in governmental spending. Also to take the current 2% investment to a level close to 5% so that, along with private investment, it will reach 25% of GDP.A large part of this new investment will go towards\u00a0the provision of\u00a0new infrastructures in the south of the country, where the most backward states\u00a0are located.<\/p>\n

The modernization of\u00a0the Isthmus of Tehuantepec, which includes a new port in Salina Cruz, Oaxaca, \u00a0which will be one of the infrastructure megaprojects of the next administration and it\u00a0is planned\u00a0to\u00a0allocate\u00a025,000 million pesos of public resources, bring paved roads to near of 350 municipal capitals of the country, fundamentally to the southeast area of the country \u00a0(Oaxaca, Chiapas and Guerrero).<\/p>\n

Renovating and expanding the existing railway, port terminals and the\u00a0Ixtepec\u00a0airport are some of the projects that will be developed in the next six years.\u00a0.<\/p>\n

The recovery of oil production is one of the great economic proposals of\u00a0L\u00f3pez\u00a0Obrador and also\u00a0the renovation of\u00a0existing refineries. These measures according to Lopez\u00a0Obrador\u00a0would allow reducing the price of gasoline and diesel in the second half of his six-year term.<\/p>\n

The next secretary of Finance, Carlos\u00a0Urz\u00faa, sees it\u00a0feasible\u00a0even for the Mexican economy to grow at a rate of of 5% per year in the second half of the mandate.<\/p>\n

Even though L\u00f3pez Obrador said that the new airport was going to be cancelled, Javier Jim\u00e9nez Espri\u00fa, proposed by L\u00f3pez Obrador as communications secretary, announced that next week the analysis with the current government regarding the construction of the Mexico City International Airport (NAIM) will begin. He stated that the alternatives will be analyzed.<\/p>\n

Mexico is a strong destination for production, thanks in part to the country\u2019s free trade agreements and its geographic positioning \u2013 proximity to\u00a0USA\u00a0and Latin America.<\/p>\n

The most significant benefits\u00a0under\u00a0the Mexican economic development plan are those provided to promote the export of manufactured goods. These export benefits apply to all entities, regardless of size and degree of foreign ownership, and\u00a0are provided\u00a0in both tax and non-tax forms.<\/p>\n

Regarding the real estate and construction sector, it\u00a0is expected\u00a0that revenues will grow throughout the year to grow by 6% by early or mid-2019.<\/p>\n

In Mexico, housing construction will\u00a0achieve\u00a0an increase in revenues of\u00a0approximately\u00a018% until 2018, so it\u00a0is expected\u00a0that the volume of cement sales will grow within the range of -3% to 5% until mid-2019.<\/em><\/strong><\/p>\n

 <\/p>\n

Mexico City, July 12th<\/sup>, 2018<\/p>","protected":false},"excerpt":{"rendered":"

Mexico Investment Overview After 2018 Elections Andres Manuel\u00a0L\u00f3pez\u00a0Obrador\u00a0(AMLO) won the Mexican election and his party will\u00a0have the majority\u00a0in Congress, which may lead the country to relevant changes in Mexico\u00b4s policy and politics. What to expect? L\u00f3pez\u00a0Obrador\u00a0promised quite ambitious social programs, assuring investors that he will exercise fiscal prudence and respect\u00a0the independence of\u00a0Mexico\u2019s Central Bank. The\u00a0people […]<\/p>","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","footnotes":""},"categories":[1264],"tags":[],"class_list":["post-19633","post","type-post","status-publish","format-standard","hentry","category-english"],"_links":{"self":[{"href":"https:\/\/basham.com.mx\/en\/wp-json\/wp\/v2\/posts\/19633","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/basham.com.mx\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/basham.com.mx\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/basham.com.mx\/en\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/basham.com.mx\/en\/wp-json\/wp\/v2\/comments?post=19633"}],"version-history":[{"count":0,"href":"https:\/\/basham.com.mx\/en\/wp-json\/wp\/v2\/posts\/19633\/revisions"}],"wp:attachment":[{"href":"https:\/\/basham.com.mx\/en\/wp-json\/wp\/v2\/media?parent=19633"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/basham.com.mx\/en\/wp-json\/wp\/v2\/categories?post=19633"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/basham.com.mx\/en\/wp-json\/wp\/v2\/tags?post=19633"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}