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The stagnant economy of current Mexico
The economy in Mexico is being stagnant, in the last quarter of the year there was a growth of the .1 % according to figures from the National Institute of Statistics and Geography, this means, that we are facing the least economic growth during the first nine months, in more than a decade and also that it is thought that we have not yet touched the bottom, since productive investmentIt remains down, national consumption continues to weaken, government spending that has not been able to grow and of course exports are another affected engine. Since last year, businessmen, and experts in economics had some uncertainty of how the economy would develop in this year, a strong indicator, was that last December, there was a loss of more than three hundred thousand jobs, according to data from the data of the dataSocial Security, this for many was a sign that the transition of the new administration would cause strong changes, and because the generation of employment is very important, since if there are no jobs, there will be less people with potential and ability to acquirethe goods and services, and this would affect the economic engine that is consumption, and the collection, since without consumption, there is no VAT to charge.
(Expansion, Oct, 2019) ‘Private Sector Specialists reviewed the growth expectations of the Gross Domestic Product (GDP) of Mexico for 2019 of 0.50% in August 0.43% in September, according to a survey conducted by the Bank of Mexico (Banxico) and published on Tuesday.
For next year they set the growth forecast in 1.35%, compared to 1.39% of the Central Bank prior poll.
For the closing of this year, general inflation is expected to be 3.08%, compared to 3.31% estimated in August. And by 2020 the expectation went to 3.49%.
The expectations on the level of the exchange rate of the peso against the US dollar for the end of 2019 remained at levels close to those of August, passing 19.91 19.88.
For the closure of 2020, the prospects on this indicator also remained at levels similar to those of the previous survey, from 20.38 to 20.36.’
As we can see, things are not very favorable for our country in the coming years, we probably need to make drastic changes within the government administration, to bring more investment, generate jobs, and that the engines of our economy do not continue to lose strength.
(Leo Zuckermann, Feb, 2019) ‘To the growing evidence of a slowdown in the last quarter of 2018, you must add, now, three factors that could exacerbate the fall.
- He rough fuels for the war against huachicoleo that affected the Bajío, one of the most productive regions in the country.
- The strikes in Tamaulipas.
- Economic losses due to the blockades of the railways by the CNTE in Michoacán.’
These are just one of the strong causes that have caused recession in our growth, and prevent the economy from flowing.
(The New York Times, Nov, 2019) ‘Two of the important problems that President Andrés Manuel López Obrador must consider priority, are that of brutal violence in Mexico and that of his poor economic growth, since they are related. And of doing nothing, we will have a Mexico without economic or social stability.’
In conclusion, if we want our country to develop and not stagnate, our government must take different factors into account, such as violence, since when controlling this, the amount of consumption and business activity could increase, and thisIt could be achieved with the help of the United States government, implement good strategies, since the actions that have been carried out so far in our country such as the National Guard, has not been successful.
In general, our country has great potential, with stable economy, controlled inflation, in addition to the fact that we are full of prepared youth, and if we talk about natural resources, we are also very rich, all we need is to find a way to detonateGrowth, to end the low levels of equality and poverty, which caused the country to take President López Obrador to power.