June 14, 2019
1. President López Obrador and business leaders sign a USD $32 billion dollar sign investment plan
President López Obrador and the Mexican Council of Business (CMN) held a meeting with the Business Coordinating Council (CCE) and signed a pact to invest a total of $32 billion dollars in 2019.
The agreement to promote investment and inclusive development is divided in four priority areas: the energy sector, transportation infrastructure, social investment and the development of Mexico’s southern and south-eastern regions.
2. Federal Tribunal orders to halt the construction of Santa Lucía Airport
Last week, a federal court granted a suspension of the construction of Santa Lucía Airport to a businessman that filed complaints regarding the absence of environmental impact studies and permits for the airport.
The Collective #NoMásDerroches, a joint private sector initiative, filed 147 legal provisions. Four of these were favorable to the collective and a federal court ordered to halt the construction of Santa Lucía Airport until environmental studies are conducted. The last of the favorable resolutions ordered to leave the Texcoco Airport project intact as the Federal Government planned to flood what remained of the construction.
3. Secretary of Foreign Affairs reveals deal with U.S. government to halt planned tariffs
U.S. President Donald Trump announced the imposition of a 5% tariff on all Mexican goods in retaliation for “inaction on illegal immigration.” Secretary of Foreign Affairs Marcelo Ebrard was sent to negotiate a deal with the U.S. Government and successfully resolved it.
The Secretary of Foreign Affairs, Marcelo Ebrard, revealed that the U.S. Government set a deadline of 45 days for Mexico to reduce the flow of migrants to U.S. territory, otherwise tariffs on Mexican goods will be imposed. The Mexican Government expects to send the newly formed National Guard to the southern border.
4. OECD: Mexican economy keeps growing at a slow pace
The Organisation for Economic Co-operation and Development (OECD) published its 2019 first quarter report detailing economic growth of its member states. Mexico, Turkey, South Africa and Italy were among the countries also experiencing slow economic growth.
Mexico reported a contraction of 0.2% in 2019 first quarter and annual growth of 0.1% growth. The OECD adjusted the Mexican economic growth forecast for 2019 and 2020 to 1.2% and 1.7% from 1.6% and 2%, respectively.
El Economista: México, entre los que menos crecieron del G20: OCDE
5. Inflation level drops in May following two months increasing
The National Institute of Statistics and Geography (INEGI) reported May inflation dropped -0.29%, leading to a y/y inflation rate of 4.28%. The inflation level is far from the Mexican Central Bank’s target of 3%, but May’s numbers are encouraging following two consecutive months of alarming increases.
Reduced prices in the electricity, tourism, air transport and petroleum sectors caused low inflation levels.
Excélsior: La inflación da un respiro; reporte de mayo