Despite the fear that plagued the private sector in the first half of the year, the preliminary stages of Andrés Manuel López Obrador’s (AMLO) administration seem to be giving more confidence to current and potential investors. In fact, it seems the most worrisome factors for future economic growth are the potential outcome of NAFTA negotiations and the US’ ongoing trade war with China.
Overall, the industry expects a more solid performance during the second half of 2018, both for the domestic market and the completion of investments currently on hold.
Want to know more about what happened over the week? Keep straight ahead.
What a Trade War Will Bring
The Editorial Director of El Economista, Luis Miguel González, gives an overview of how the trade war between the US and China will impact Mexico’s economic development.
Meanwhile, the battle continues and China announces new tariffs on products imported from the US. The WTO asks US President Donald Trump and the Chinese President Xi Jinping to meet and resolve these issues in a productive way.
Now that the federal elections are in the rearview mirror, José Luis Hotema, President of the Laguna Automotive Cluster, expects automotive investment to reactivate.
Distributors expect stronger sales in the second half of the year and Philipp Heldt, Managing Director of INFINITI Mexico and Latin America, sees greenfield market in Queretaro.
NAFTA, Concerning but Maybe Not for Long
Hung Q. Tran, Executive Director of the International Finance Institute, says the outcome of NAFTA negotiations is a more worrying factor for Mexico than AMLO’s presidency.
Eduardo Solís, Executive President of AMIA, says AMLO’s meeting with US Secretary of State, Mike Pompeo, generates confidence among investors. AMIA and all other automotive associations in North America expect negotiations to renew now that AMLO has been elected President.