According to Barclays, despite the elections, Mexico still has solid macroeconomic foundations, which is what attracts investors. Also, Citigroup rules out any initial economic deterioration after Sunday’s AMLO victory. The Mexican regulator of Economic Competition, has approved the merger of Banco Interacciones and Banorte, which would make it the second largest financial institution of the country. The Ministry of Tourism is also doubling its efforts to promote Mexico’s image in the US.
To talk about macroeconomic foundations and why the Mexican economy remains an attractive option for investors, do not miss our interview with Raúl Martínez-Ostos, Chairman of the Board and Director General of Grupo Financiero Barclays México.
In case you missed it, here is the news that made headlines this past week:
- On July 1st, Mexico will hold the largest elections in its history. Do not miss our analysis on the importance of the election.
- According to Barclays México, the next presidential administration needs to focus on maintaining the country’s macroeconomic foundations, since they have been corrected in the past years and will allow the country to have an organized political transition. According to the investment bank, if NAFTA’s cancellation were not a threat, Mexico would remain a very attractive investment destination, despite the electoral uncertainty.
- Despite Citigroup’s perspective, Gustavo de Hoyos, head of Coparmex, says that the business organization does not rule out the appearance of an economic crisis at the end of Peña Nieto’s presidential term.
- The Mexican regulator for Economic Competition, COFECE, has finally given its approval for the merger between Banco Interacciones and Banorte. After the approval, Banorte and Interacciones agreed that the merger would be completed by July 31, 2018. With this transaction, Banorte would become leader in the financing of public infrastructure in the country.
- SECTUR its doubling its efforts in the promotion of Mexico as a tourist destination in the US. According to the Minister of Tourism, in 2018 the Ministry has a budget of around MX$1 billion destined exclusively for the promotion of Mexico abroad.
- According to Banxico, between January and April 2018, the number of international tourists arriving to Mexico grew 10.2 percent, for a total of 13.9 million tourists in the first four months. This growth percentage is substantially bigger than the world and regional average, which stand at 6 percent and 3 percent respectively.
- Blockchain technology is not only for the fintech sector. According to FIRA’s Jorge Álvarez, the agribusiness sector could be greatly benefitted by the use of these technologies, allowing for more transparency for consumers and producers.
- According to the CNBV, the first draft of the fintech secondary regulation will be ready in July 2018 and that the corresponding law will be published as planned in September 2018.