Vector Casa de Bolsa predicts that the influx of foreign direct investment will boost the Mexican economy, which could grow by up to 2% in 2023.
“We are considering economic growth of 1.6% in 2023 (with possibly an upward revision outlook) and we have evidence that investment will become more dynamic in the coming months,” said Rodolfo Navarrete, chief economist at Vector Empresas.
“If this happens, we can reach up to 2 percent,” he said during the second conference “Finance and Investment Perspectives” in 2023, organized by Casa de Bolsa.
Around 500 participants gathered at the event, who were able to hear valuable information for decision-making on investment issues and financial markets.
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In addition, they highlighted the views of the country’s economy, a possible economic recession for 2023 and a contraction in early 2024, which will be greatly affected by the economic slowdown in the United States and the effects of domestic economic policy.
The Mexican economy has been subject to two forces working in opposite directions this year. On the one hand, the negative forces are related to the possible economic slowdown in the United States and the consequences of domestic monetary policy; Rodolfo Navarrete said both factors could cause a slowdown in 2023 and early 2024.
On the other hand, the positive forces correspond to more private investment as a result of nearshoring, the restructuring of the auto industry and the investment that may be generated by the new law in chips and science in the United States; The chief economist of Vector Empresas explained that these factors will give more dynamism to certain regions and economic sectors and increase the growth of the Mexican economy.
“We are facing the biggest global financial crisis in modern history, the biggest health pandemic in the last 100 years and the biggest war in Europe since World War II,” said Edgardo Cantu Delgado, CEO of Vector Empresas and CEO of Vector Stock House.
“It’s these kinds of situations that make us face new challenges, reinvent ourselves, and make us question how to see things from a different, innovative perspective that we might not have seen if we hadn’t come face-to-face. Scenes like this and what motivates us to discover how things can be done.” ” said Cantu Delgado.
Luis Alfredo de Urquijo, director of asset management at Vector Casa de Bolsa, highlighted the country’s interest rate hikes coming to an end. “We are on the last call to hold the highs achieved, especially in real terms (or above inflation).”
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2023 will be a great year for debt instruments, so it is recommended to take advantage of the double advantage: on the one hand, the high levels of current rates and on the other hand, the resulting price gains due to lower inflation and interest rates in the coming quarters.
“For the variable income market, diversification and high selectivity in portfolios are recommended, maintaining greater flexibility to invest in areas and sectors that will perform well if inflationary scenarios and eventual economic slowdown are limited,” the manager highlighted.
Over the past 4 years, Vector has reached record figures, despite the negative environment, today its assets under protection are consolidated at about 12 trillion dollars, representing the investments of more than 57 thousand clients from more than 20 surrounding countries. the world