300 PALABRAS, by Mario Melgar-Adalid Mexico 2015: Economic OpportunitiesDespite the strange political climate of the last few months, Mexico’s economic outlook points toward a considerably more optimistic view than what social indicators would have predicted. Usually, bad news on social and political behavior negatively impacts the economy; however, the outlook for the Mexican economy points to opportunities, especially for those who consider Mexico as a good option for trade and investment opportunities, or simply tourism. Controlling inflation has historically been a problem for Mexico; however, this factor has ceased to be a concern, as inflation is expected to remain at a reasonable 3% this year. In 2015, higher growth in the country’s Gross Domestic Product is expected than GDP growth in 2014, primarily due to effects resulting from Mexico’s broad structural reforms. While the energy reform will not manifest its complete effects for some time, in part because of the dramatic fall in the oil prices around the world, the construction of major infrastructure pipeline projects is expected to move forward, as well as new investment in the oil, gas and electricity sectors, including in the field of renewables and clean energy. New investments, including those in the telecommunications sector, will give rise to more competition, which will result in lower prices for the domestic consumer. According to the last report from Banco de México, the Mexican financial sector is well capitalized and prepared to finance new investment projects. Further, the depreciation of the Mexican peso against the U.S dollar will have a favorable impact on Mexican exports, and should boost the manufacturing sector, particularly in the automotive, aeronautical, electronic and electric industries. All of this will occur in conjunction with the economic recovery of the United States, Mexico’s main trading partner, as well as the strengthening of the U.S. labor market, which suggests a strong growth outlook for both existing and new projects.
