November 22, 2019
1. Deputies approve the Federal Expense Budget 2020; it turns to the President
The Chamber of Deputies approved this Friday, both in general and in particular, the 2020 Federal Expense Budget (PEF). With 302 votes in favor, 65 against and one abstention, deputies, meeting at an alternate headquarters, endorsed the PEF with a total amount of MXN$ 6,107 trillion (USD$ 314 billion).
This represents an increase of one percent in real terms (MX$269 billion, USD$ 14 billion) compared to the budget approved for 2019.
The Morena party and its allies in Congress: The Labor Party, Social Encounter Party and The Green Ecologist Party voted in favor of the reallocations made for MX$11,396 billion (USD$ 588 million).
2. Mexico reported increases in 7.8% in Foreign Direct Investment during three quarters
The Secretary of Economy reported the capture of USD$ 26,055 billion in Foreign Investment (FDI) between January and September 2019, which represents an increase of 7.8% in comparison with the same period in 2018.
Graciela Márquez Colín, Secretary of Economy, said that although the world’s Foreign Direct Investment flows decreased for the third consecutive year, in Mexico, these flows have remained stable. The manufacturing sector concentrated 44.6% of FDI, followed by financial and insurance services (13.9%), trade (11.3%) and electricity generation (5.8%). The country that contributed the most to Mexican FDI was the United States with 34.9% of the total, followed by Spain with 15.5%. On the other side, the entity with the most FDI was concentrated in Mexico City with 25.1%.
3. Federal expense decreases for Mexican States
According to data from the Ministry of Finance and Public Credit, federal expenses to the states totalled a MXN$ 229 billion (USD $ 11.81 million) from January to September 2019. This amount represents 3.9% less than in the same period of 2018. The decrease is the first drop in ten years.
The states that registered the largest decrease in these transfers were Durango, Colima, and Sinaloa with decreases of 14%, 13%, and 10% respectively. Other states, which depend heavily on transfers from the federation, also suffered cuts such as Chiapas (-5.1%), Guerrero (-6.1%), Michoacán (-5.5%); in addition to Oaxaca and Tlaxcala with decreases of around 2.4% and 4.4% respectively.
Reforma: Cae gasto federal para los estados
4. Armed Forces reiterate loyalty to President Andrés Manuel López Obrador
The head of the Secretary of National Defense, General Luis Crescencio Sandoval, reiterated his loyalty to the project of President Andrés Manuel López Obrador and the democratically elected institutions in the country, during the ceremony in Mexico City to mark the 109th anniversary of the start of the Mexican Revolution and honor the Mexican military and marines.
A few weeks ago, General Carlos Gaytán, who was Deputy Secretary of National Defense, during former President Felipe Calderón’s government, expressed his disagreement with the management of Andrés Manuel López Obrador’s administration.
5. “Mexico needs a ‘push’ to grow”: Carlos Slim
Businessman Carlos Slim asked to promote the development of infrastructure in the country because Mexico needs a ‘push’ that allows the economic growth that the country deserves, after receiving the National Engineering Award.
Carlos Slim stressed that China invests 12% of its Gross Domestic Product in infrastructure, which reflects the need to invest in this sector to generate economic growth in Mexico. During his speech, the leader of Grupo Carso, considered Telmex at risk due to the government’s over-regulation of the company, since it is considered a preponderant agent despite only having 35% of the fixed telecommunications market.