The 2024 presidential elections will not have any impact on Mexico’s business environment, the rating agency Standard & Poor’s (S&P) assured.
“We believe that the current administration will continue to be prudent in the execution of economic policies. However, we do not expect political actions to substantially strengthen Mexico’s business environment,” the agency said in a report.
From their perspective, economic activity in Mexico in 2024 will be marked by an environment of deceleration and greater pressures due to increased prices in goods and services.
“High inflation has eroded the purchasing power of households and the profits of companies, while rising interest rates discourage demand for credit,” said the credit risk rating agency.
In this regard, he specified that next year a growth of 1.8 percent is expected, and for 2025 a rebound of two percent is expected.
“The economic slowdown and high rates put pressure on the debt payment capacity of households and companies. However, banks’ long-standing conservative financing practices will cushion the impact,” S&P added.
Despite this environment, he highlighted the relocation of foreign companies in the country as a positive point for the national economy, an economic phenomenon known as nearshoring.
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“We will closely monitor how key obstacles are addressed, including issues related to security and inadequate water and energy supplies,” S&P concluded.
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