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Monday, November 16, 2015

Upswings in Foreign Investment and Economic Growth in Mexico

Office of the Mexican Presidency

During his attendance at the 80th anniversary celebration of the automotive company General Motors in Mexico, which announced an investment of US$800 million, Mexican President Enrique Peña Nieto said, “This is a time to invest in Mexico and to grow with Mexico.”

“As in the automotive industry, Mexico is determined to modernize and, importantly, to break down the barriers that have prevented or slowed our country’s enormous potential for growth and development,” he said.

After noting that almost a year ago the company announced a large-scale investment of over US$5 billion, he said that thanks to General Motors and other global companies Mexico has been consolidated as an automotive power.

“Today, more vehicles are produced, more vehicles are exported and more vehicles are sold on the domestic market. Mexico has taken great strides in its automotive industry over the last 15 years.”

He said that in vehicle production, Mexico now produces 80 percent more and exports have increased by 90 percent over the past 15 years. Sales to the domestic market have grown by 60 percent during this period. He noted that nearly three-quarters of this growth has taken place over the past three years. He said that these, “Are extremely encouraging figures that encourage us to continue building the Mexico we all want.”

After declaring that structural reforms are important handholds for growing economically, as they will increase the competitiveness and productivity of our country, he said that these are innovative policies affecting various aspects of Mexicans’ social lives, and that several of them are dedicated to combating poverty and inequality.

“After all,” he said, “Everything that is being done, structural reforms, innovative policies, infrastructure, is not as an end in itself. It has a goal and an orientation, which is to raise the quality of life of Mexican families and the first results are already visible.”

In infrastructure, the president declared that significant investments have been assigned to expanding the country’s network of gas pipelines, which will make it possible to almost double the network: “By the end of this Administration, practically all the states in the country will be connected to the national gas pipeline network that will grow from just over 11,000 kilometers to more than 20,000 kilometers already under construction.”

He said that during the first three years of his administration Mexico has accumulated more foreign direct investment than in previous years, on the order of US$80 billion, which is itself 50 percent more than that registered by OECD member countries.

He recalled that employment has also been growing at a rate of over four per cent, since, according to the Mexican Social Security Institute, 1,760,000 jobs have been created, the largest number of jobs created in Mexico in the same period in the past five administrations.

He explained that the inflation rate for October of this year was the lowest that has been observed in the past 45 years, since 1970, the year when inflation began to be measured in Mexico, standing at 2.48 percent.

He added that in September, the construction sector grew at an annual rate of four percent, and pointed out that according to the latest data from the National Institute of Statistics and Geography wholesale sales increased at an annual rate of 5.7 percent, and retail sales by 6.4 percent.

The President Peña Nieto added that the National Association of Supermarkets and Department Stores reported that annual sales recorded in October grew 9.8 percent.

“Despite the global environment Mexico continues to grow, and the government will continue along the path of acting responsibly to preserve one of the main strengths of our country, macroeconomic stability, which will ensure welfare and prosperity for Mexico,” he said.

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Press release, "Mexico is determined to modernize and break down the barriers that have curbed its enormous potential for growth and development: Enrique Peña Nieto," Presidency of the Republic, Nov. 13, 2015, Mexico, DF; translation Presidency of the Republic

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