Mexico close to increasing the public-private investment goal: CCE

Business

By CAPosts 02 December, 2020 - 05:14pm 22 views

Mexico City. The sum of the two investment packages of the private sector in infrastructure, as well as public projects, add up to almost 4 percent of the Gross Domestic Product (GDP), so the nation is closer to reaching the amount necessary to grow more, said Carlos Salazar Lomelín, president of the Business Coordinating Council (CCE) .

During a virtual seminar organized by the Institutional Stock Exchange, the leader of the dome body pointed out that due to the covid-19 pandemic, poverty in the country will increase.

“This health crisis is going to inherit us, whatever is said, and whatever the story is put, in real figures, about 12 million more people, who fall to the level of poverty. This is reality, it is what should really hurt, it is what should be worrying us, "he said.

He added that the pandemic has generated wear and tear, since the country comes from situations of fragility for a long time, because it only prides itself on average 2.5 percent annual average during the last 30 years. "The economy should be growing at 6 or 7 percent per year, obviously we have deficiencies in everything, but with areas of opportunity."

In that vein, he highlighted the importance of the announcement of the second infrastructure investment package that was announced on Monday.

"If we could make the investment of the public sector grow at 5 percent per year and that of the public sector push a point and a half more, we would reach that long-awaited 25, which at least seems to me, it should be a goal" , he pointed. He stressed that "whatever is said", the health crisis will bring 12 million poor people to the country.

reiterated that the country needs to invest at least 25 percent of gross domestic product year by year to grow at least 4, since historically it has only been possible to invest up to 21 percent of GDP, of which 19 are from the private sector and less than 2 percent correspond to public investment.

He commented that it is necessary for Mexico to have a plan similar to the Marshall one, that is In other words, in order to recover the effects caused by the pandemic in which all resources come from the business sector.

“We are not looking for everything to be operated by the private sector, we are looking for the country to mobilize and the country to mobilize with the private resources that do exist, ”he pointed out.

explained that with the two investment packages that are equivalent to 2.3 percent of GDP, plus 1.5 percent of public projects — Mayan Train and Santa Lucía International Airport—, almost 4 points out of the 5 required to grow have been reached

The business leader regretted that the media did not highlight that 400 thousand jobs will be created with investments of 500 billion dollars

Salazar Lomelín also expressed his disagreement in the decisions made by President Andres Manuel López Obrador. “The constant change of rules, we had agreed on certain reforms, another vision arrives and now they eliminate the reforms, or they try to interpret them at will according to a certain ideology, and I believe that it is always viable and good. for society to debate things in the future, but you have to put a line ", he pointed out.

" What is not valid is to change the rules when you are already playing in a certain way, that is what I do not think benefit us as a country. That has been our argument, if they should be changed, we have to sit down and discuss them ”, he added.

Source: MSN