With just five months to go before Mexico’s presidential election, a survey of business leaders released Monday finds their biggest concerns center on the vote’s outcome and long-standing worries about insecurity weighing on the economy. economy.
The survey conducted by the consulting firm KPMG showed that 58% of executives consider the presidential race to be the main variable for their activities, even before a possible economic downturn.
In June, Mexican voters will choose between ruling party candidate Claudia Sheinbaum, a former Mexico City mayor who pledges to continue the policies of incumbent left-wing President Andres Manuel Lopez Obrador, and the opposition’s top hope , Xochitl Galvez, who proposes a more business-friendly approach.
Mr Lopez Obrador’s popularity appears to give the edge to Ms Sheinbaum, who is currently favored in most polls.
Nearly half of the 900 executives surveyed agree that the most pressing risk for Mexican businesses is the deterioration of the rule of law and worsening insecurity.
Rule of law and insecurity risks rose from fourth place in last year’s survey to first in the latest edition, KPMG’s Gerardo Rojas told a conference Press.
Despite concerns about future governance, more than half of participants expect the Mexican economy to maintain its current growth rate in 2024, while 30% expect stagnation. Furthermore, 13% of participants believe that the economy will enter a recession.
Last year, Mexico overtook regional heavyweight Brazil as the top destination for investors, particularly for mergers and acquisitions.
“We were struck by the fact that Mexico overtook Brazil in the ranking. Historically, Brazil was the preferred country,” Rojas said.
He noted that trade tensions between the United States and China have benefited Mexico with so-called “nearshoring”, with many companies seeking to relocate their operations from Asia in order to be closer to American supply chains. (Reporting by Aida Pelaez-Fernandez; Writing by David Alire Garcia and Bill Berkrot)
2024-01-23 04:45:06
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