In recent days, there have been successive bullish reviews of the growth outlook for the Mexican economy.
From the Mexican government, Finance Minister Arturo Herrera predicted that the national economy will have a rate of 5.3% by the end of this year.
Rather, he said they were realistic expectations and rejected the US fiscal stimulus plan.
However, most analysts from different companies who have raised their growth forecasts agree that the higher GDP growth rate will actually be a recovery effect (given an 8.5% GDP drop in 2020).
They also agreed that the high economic growth in Mexico will be largely explained by the aggressive fiscal policy applied by the government of US President Joe Biden and that according to most expectations, this will lead to the US economy reaching a growth rate of 6.2%. .
Bidenomics, as some have called them, will generate a very significant boost to economic activity in Mexico.
In this context, the upward revisions to the growth outlook for the Mexican economy are explained.
The results of Citibanamex’s regular survey were released yesterday.
Optimism among professionals regularly polled by that company has reached its highest level in 15 months.
They expect 4.9% growth in the Mexican economy this year. The data is just not higher than that of the previous survey of 4.7%.
This is the highest forecast obtained by specialists since January 2020, months before the outbreak of the Covid-19 pandemic and an unprecedented economic storm.
However, for the next year 2022, the projected rate of growth is 2.7%, a figure that has remained in the past five surveys. Although Citibanamex’s survey reflects remarkable optimism, it appears conservative regarding the Treasury’s forecast of 5.3% growth.
As for the other special predictions that have been revised upwards. Just two days ago, rating agency Moody’s revised its forecast for Mexico’s 2021 economic growth from 3.5% to 5.6%.
The new forecasts are based on the “American locomotive” drive and the Covid-19 vaccination campaign in that country. Moody’s made it clear that despite these expectations of better economic performance compared to previous expectations, Mexico’s GDP will not regain the same levels in 2019 before the end of 2022.
At the start of last April, the International Monetary Fund expected Mexico’s GDP to grow this year at 5%. Upward revision of 0.7 percentage point from January forecast.
Despite the fact that the forecasts are revised upwards, what is generally expected is that Mexico will take until 2023 or even 2024, to regain the size of the economy at the end of 2018.
Pizzo, Mexican unicorn
The excitement prompted General Manager of the Enterprise Stock Exchange, Maria Ariza, to post it on her Twitter account, where she says, “I can’t be very proud. How exciting it is to see how our entrepreneurship ecosystem is changing!”
He was referring to a truly unique truth. Mexican cryptocurrency exchange Bitso raised $ 250 million and became the Unicorn Corporation, as the financial term is given to those companies that generate more than $ 1 billion in value.
It also became the first Latin American cryptocurrency company to achieve this status.
With this funding, the company reached a valuation of $ 2.2 billion and became the Unicorn Corporation.
Bitso is the second company, after online car startup Kavak, to achieve the unicorn category in Mexico.
Rich and powerful
He has worked non-stop in newspapers, magazines, radio, television and the Internet, in the past 31 years specializing in business, finance and economics. He is one of three hosts of Alebrijes, guila o Sol, a program specializing in economic issues that airs on Foro TV.