Aspiria’s Post

Mexico's economy is at a turning point. While nearshoring offers great growth opportunities, fiscal challenges, political changes, and potential judicial reforms are creating uncertainty for investors. Curious about what’s next for Mexico? In our latest guest blog, Carlos Serrano, Chief Economist at BBVA Mexico, shares his insights on these crucial issues. https://lnkd.in/dUeis7jc

It’s an exciting time to be part of Mexico’s story. After spending time in Mexico City with Larry last week to meet with industry leaders, it’s clear that both BlackRock and our clients are energized by the nation’s growth potential.   Last year marked the first time in two decades that Mexico was the U.S.’s top trade partner. With supply chains moving closer to home, Mexico is well positioned for growth as a close neighbor to the world’s largest economy and as a nation that has built deep free trade agreements, strong financial institutions, and a skilled labor force. Manifesting that potential will depend on significant investment in infrastructure assets across energy, logistics, and transportation – making public-private partnerships more important than ever before. And with an estimated $46 billion [1] in potential new investments in Mexico driven by nearshoring, there’s room to run.   At BlackRock, we are committed to being a part of that growth, as we recognize the importance of infrastructure both for society and as an investment opportunity for our clients. We’ve had the privilege of working alongside Mexican investors for over 15 years, and during that time, we have been grateful for both the welcoming nature of the Mexican people and the deep closeness we feel to our clients. It was great to see our team’s dedication to consistently re-underwriting that trust and to delivering stronger financial outcomes for Mexico’s broader population. We’re excited to be part of the next stage of growth for Mexico. Vamos! [1] https://lnkd.in/d5fVEyzw

Carlos Slim's relationship with Mexican politics reveals the resurgence of an old tit-for-tat exchange system: Business opportunities offered by the government in exchange for political acquiescence. But this isn’t 20th Century Mexico anymore. In fact, Slim is far more vociferous against the current administration’s policies than any businessman ever would have dared to be 40 years ago. This has everything to do with the fact that the economy back then was far more closed, leaving business at the government’s mercy. Today, Slim's América Móvil, a telecoms company, is heavily invested abroad. Mexican subscribers make up only about 27% of the company's subscribers. But look closely at Slim's recent investments and you’ll spot his endgame —one that does expose him to governmental whims. To find out, subscribe to The Mexico Political Economist: https://lnkd.in/gCds9grh  

I shared this in Spanish last week: I see a lot of warning signs currently pulsing through Mexico’s economy. Backing up: I’m part of a Expansión panel that regularly assesses Mexico’s economic health. We use a 🚥 scale. And as President Claudia Sheinbaum took over from AMLO earlier this month, we gave the following assessments: 🔴 Government Debt—at 50% of GDP for the first time in modern history, 2023 deficit of 6% 🟡 Public spending—higher than government revenues 🔴 Inflation—at 4%, still higher than the Bank of Mexico’s 3% goal 🟡 Exchange rate—a high budget deficit endangers its stability 🔴 Formal employment—currently far short of 2024 goals 🟢 Foreign trade—strong base to maintain and enhance with diversified exports 🟡 FDI—driven by reinvestments, need more new investment A lot for our new president to tackle. Log on for our webcast on Thursday, October 24, at 4:00 pm EST. #investing #equities #international = = = 📌 We specialize in little-known non-U.S. small- and mid-cap equities. 📌 Sign up for AZTLAN’s Thoughts on the Run, insights, and analysis in the Featured Section.

U.S. policymakers do not actively engage their country’s large firms as partners in startup policy. This helps explain why the Biden administration’s Inflation Reduction Act and CHIPS Act are spending billions of dollars in grants and rebates to attract foreign semiconductor, electric battery, and electric car firms to the United States. Simply put, American firms cannot compete with their foreign peers in some areas of hardware and manufacturing that demand long-term thinking and huge upfront investment. This is from an article in Foreign Affairs Magazine discussing innovation and the partnership between government, larger corporations and start ups. Shouldn't we be asking Why? Why can't American firms compete? Why would we want to rely on foreign companies for critical technology? Then ask What? What can we change to overcome these barriers? #manufacturing #innovation #partnership

Modern semiconductors are so small a spec of dust falling on a chip is like ramming a truck into a factory. It renders the component useless. Same goes for atmospheric oxygen. Argon is needed to keep the air inert. Mexico produces argon—it's just not good enough for the chip industry. Find out why by subscribing to The Mexico Political Economist https://lnkd.in/gAtsp6MU

If Trump wins today and puts Musk in charge of efficiency, economic growth will be the number one priority❗️ We all know that Europe lags behind America when it comes to innovation. Of course there are also categories in which Europe is doing better, but if we can't catch up on economic growth, it's just a matter time before our quality life suffers. If Trump is elected and appoints Musk to Government Efficiency Commission, he will make innovation and economic growth a top priority and give companies all the freedom they need to do their best. But what about Europe? I am not a fan of putting our country down either, and yes, there are great unicorns, startup hubs and excellent investors. But it's not enough. It will never be enough: 👉 If innovation is just one issue among many and not at the top of the agenda of the highest decision-makers in our political and economic system. 👉 If businesses have to deal with endless restrictions, laws and bureaucracy. 👉 If capitalism is seen as a negative and we start discussions about increasing taxes instead of incentivising investors. 👉 If the European market is not one market. We also need an efficiency commissioner in Europe! And we need to use this as a wake-up call! We have a lot of work to do - let's get started! #america #election #innovation

#Infographic 💡 In the first half of 2023, Mexico received $29.04 billion in Foreign Direct Investment, a 41% increase compared to 2022. Mexico's growth shows no signs of stopping! 🌍📈 Here are the 10 states with the highest foreign direct investment in Mexico. Read the Full Article: https://buff.ly/4h9j4HX Read the Article in Spanish: https://buff.ly/3Yv6aN4 #ForeignInvestment #EconomicGrowth #MexicoRising #GlobalBusiness #MexicoEconomy

📈 USMCA: Decoupling or Risk Mitigation? 🇲🇽🇺🇸 In this in-depth analysis, we explore the significant impact of the USMCA on trade dynamics, the necessity for reducing commercial risks, and the performance of the "Magnificent Seven" in both the Mexican and U.S. economies. Recently, the new Federal Secretary of Economy expressed support for U.S. actions in its trade war with China, which could lead to the elimination of tariff preferences for Chinese goods in Mexico. This situation presents both challenges and opportunities for Mexican companies aiming for international expansion. With the "Magnificent Seven" — Apple, Microsoft, Amazon, Alphabet, Nvidia, Meta, and Tesla — generating remarkable returns, averaging between 50% and 92% annually, their influence on the market is undeniable. As these tech giants navigate economic adjustments, how can Baja California adapt to maintain its competitive edge? Let’s discuss how we can turn potential challenges into opportunities for growth and sustainability in our region. 👉 Read more: https://lnkd.in/ghHcgsJK #USMCA #RiskMitigation #EconomicAnalysis #TradeWar #InvestmentOpportunities #EconomicGrowth