October 1st, 2021
1. Mexico registers its lowest number of exports
National merchandise exports registered their worst fall in almost a year in August 2021 due to a decline in manufacturing—especially in the automotive sector—due to a shortage of semiconductors that limited production, according to data from the National Institute of Statistics and Geography (Inegi). Additionally, the trade balance registered a deficit of USD $3.196 million dollars.
Exports fell 4.58 percent to USD $40 billion, their most drastic fall since May 2020. Imports of consumer goods fell 6 percent, following a trend set in September. However, the US infrastructure plan may catalyze a gradual recovery of exports
El Financiero: Retroceden 4.6% exportaciones mexicanas.
2. Economic recovery plan may include investment for industries
Antonio del Valle Perochena, president of the Mexican Business Council (CMN), stated that legal regulations, respect for the rule of law, greater competition are needed to attract investment to Mexico City. The Council revealed that many jobs were recently created, but many have not yet been replaced.
During a meeting with Claudia Sheinbaum, Mexico City’s Head of Government, that discussed the first stage of the city’s Economic Recovery Plan, business interests stated that this project could attract investment in sustainable mobility, green manufacturing, creative industries, business support services, fintech, research, and health services.
El Financiero: Empresarios piden a la 4T certidumbre y Estado de derecho.
3. Planning for the 2022 gubernatorial elections begins
National leaders of the PAN, PRI, and PRD opposition parties plan to form an electoral alliance in the states of Aguascalientes, Durango, Hidalgo, Oaxaca, Quintana Roo, and Tamaulipas in 2022. The coordinator of the PRI Parliamentary Group, Rubén Moreira affirmed that the coalition of political parties remains strong after the Chamber of Deputies formed legislative commissions.
These six states will hold gubernatorial, local, and municipal elections next year. The leader of the opposition bloc stressed that the three political parties will continue working to advance their legislative priorities. He indicated that party leaders would decide the scope of the coalition’s ties in the aforementioned states.
4. Mexico’s digital competitiveness ranking drops
Mexico fell two spots in the World Classification of Digital Competitiveness prepared by the Institute for Management Development (IMD). The country fell seven places, from 49 in 2017 to 56 in 2021. The country now ranks 51 in talent, 57 in training and education, and 50 in scientific research.
Its lowest positions were for public spending on education (58), scientific research legislation (63), and cybersecurity (61), out of 64 economies. The Institute noted that countries and companies are more aware of the need to plan ahead to achieve a competitive advantage and benefit from the data-driven digital economy.
5. The government reduces resources to combat Climate Change
The government of Andrés Manuel López Obrador will allocate fewer resources to those allocated in 2020 to the adaptation and mitigation of the effects of climate change, in accordance with what is proposed in the 2022 Federal Expenditure Budget Project (PPEF). In addition, the projects of electrical infrastructure and oil refining will maintain the priority within their public policies.
On the other hand, this Friday the President sent to the Chamber of Deputies the proposal for constitutional modification in electricity regulation. The reform initiative considers the production of 54% by the Federal Electricity Commission (CFE); the private sector will be able to participate only 46%. In addition, self-sufficiency agreements and self-consumption societies could disappear; commercial chains and self-service stores will have to acquire energy through the Commission.
El Economista: Gobierno de AMLO disminuirá en 8.7% los recursos para mitigar el cambio climático.
El Sol de México: México se atrasa 6 años en energías renovables.
El Financiero: Reforma eléctrica de AMLO: Creará ‘súper’ CFE y el litio será solo para México