Mexican business leadership sees 2023 “complicated” but rules out recession

Mexican business leadership sees 2023 "complicated" but rules out recession

Mexico’s Business Coordinating Council (CCE), the country’s private sector leadership, predicted Monday that next year will be “complicated” for the economy, but ruled out a recession in the United States and Mexico, as private analysts predict.

“2023 is estimated to be complicated, (but) I do not think we will reach a recession, especially because of everything that is coming from investment, not only to Mexico, but also to the United States and Canada,” said Francisco Cervantes, president of the CCE, at an event with the media.

The leader of the dome of the private sector of Mexico highlighted the growth of the Mexican economy in the third quarter, when the gross domestic product (GDP) advanced by 0.9% quarterly and 4.3% year-on-year, which accumulates a growth of 2.9% in the first three quarters of 2022.

The business representative maintained his positive outlook although analysts have warned of a possible recession in the United States that, consequently, would cool the Mexican economy, which sends about 80% of its exports to that country.

“In Mexico, despite this economic crisis that we are going through, which is also global, I think we are going to have a good end of the year,” said the president of the CCE, which brings together 12 business organizations that represent 80% of GDP.

Cervantes highlighted “an end of the year with many good surprises, especially in investment issues,” so “Mexico is moving forward with its investments.”

He also boasted of the historic generation of jobs in the private sector, with the creation of more than 1 million formal jobs so far this year.

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Even so, he acknowledged challenges, such as inflation of more than 8.1% annually that was registered in the first half of November, which keeps the rise in prices at one of its highest levels in the last two decades.

“We have many challenges ahead, we need clear rules, that there is no change of rules so that we can still take advantage of these (investment) opportunities,” said the business leader.

The president of the CCE asked to avoid a panel of controversies within the Treaty between Mexico, the United States and Canada (T-MEC) for the consultations initiated by the North American partners for the Mexican energy policy, accused of favoring state companies over foreign ones.

“We see well (the perspective), especially that we are betting that we can (solve) it in the term of consultations and not reach a panel, that would be the best thing that could happen to us,” he said.

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