The economy will have grown at 1.0% annually in this six-year period
The Mexican economy has grown at a rate of 1.0% in the six years of the current government, of which the 4.0% target will be out of reach, as forecast by the Center for Economic Studies of the Private Sector (CEESP), when taking three years of the current administration.
If this prediction is met, the 2019-2024 National Development Plan target, which predicted that by 2024 the economy will reach a growth rate of 6.0%, with a six-year average of 4.0%, will be out of reach. .
By ensuring that the economy has performed poorly across this government, the body led by Carlos Hurtado Lopez made it clear that, compared to other emerging and advanced economies, after the Covid epidemic, Mexico took longer to reach. Its GDP trajectory before 2019, which already reflects a clearly weak growth rate.
“The decline in activity has occurred since the start of the administration, before the pandemic, when it shrank 1.6% through the first quarter of 2020. Already with the health emergency, the downturn has continued,” he said.
For CEESP, after the sharp decline in 2020, a new dynamic has emerged, in which it is difficult to distinguish between a real recovery or just a “rebound effect”, which is normal after a strong recession.
Three years into the current government, CEESP said, the executive branch still has the opportunity to correct course over the next three years.
He considered that, on the other hand, policies more favorable to productive investment and abstaining from advertisements which generate greater uncertainty can be adopted which focus only on political profitability. Likewise, the opportunities presented by the growth of the United States to Mexico can be taken advantage of.
by Lindsay H. Esquivel.
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