Mexico has become an “export machine”: Jorge Arce

Mexico City. Mexico has become a fertile country to do business, as a result of the good functioning of the economy and a series of changes that were established during the current government, says Jorge Arce, general director of HSBC Mexico.

In an interview prior to the 87th Banking Convention, which will be held in Acapulco, Guerrero, Arce highlights some changes that were made during the López Obrador administration, such as the pension reform or the elimination of labor subcontracting.

For this reason, in the country it has been generated a breeding ground positive that has contributed to increasing growth levels, which may go up. The investor – he explains – loves Mexico, at the same time that our country has also become a exporting machine.

–What does 2024 look like in economic and banking terms?

–This year is going well, growth is not as fast as in 2023, we are seeing a slowdown in certain sectors, in the exporter we saw at the beginning of the year a decrease in the growth rate, but it continues to advance in a very robust way, although The weight is already hitting him.

The agricultural and consumer sectors are stronger than ever, Mexico is at full employment, formal and informal, all Mexicans who want work are working and that is not very normal, so it is a robust and strong economy.

–Is the socioeconomic dynamic perfectly balanced?

–The economy is working and going well, there are undoubtedly areas of opportunity, but despite a global environment that became very complicated after the pandemic, we emerged strong, robust and strengthened from that situation; Thus, the country benefits.

It is a very fertile place to do business.

–How much can this fertility be attributed to government management and how much to the private sector?

–This government did good things, the Afore reform is one of the most important in economic matters that we have had in recent years, in generations. Having increased minimum wages helped consumption a lot, perhaps we can discuss whether it should have been increased four times or two times more, there are different judgments, but the fact that minimum wages have been increased was important.

“The subcontracting reform eliminated vices in the economy and gives the worker more money and better social security.

“The government had positive things, but the private sector – national and international – is dynamic and growing, knows how to compete and has invested more than ever. Foreign direct investment data shows record year in 2023; In addition, the government has invested significantly in public works, almost 3 percent of GDP.

All of this creates a positive breeding ground for the country to grow and continue to grow.

–Regardless of who wins the election, what can be asked of the next government? What to continue and what to change?

–No matter who the candidate is, in economic matters they speak similar things, perhaps the route is different, but they focus on Mexico being open to the world, that the relationship with the United States continue, that the nearshoringthat we help the population to a better life, with better education, access to health, investment in logistics, transportation and security.

–Can we say that this government left fertile ground to make investments and the economy to maintain the dynamism it demonstrates?

–There are always areas of opportunity, we have a solid base that was built in recent years in this country, in a couple of generations we built an export base, free trade agreements, healthy banking.

“Banking normally created economic crises, the fact that it is so healthy right now says that the country’s economic situation is very solid and that shows that things have been done well.

“To do? Invest more in water, electrical transmission, clean energy, logistics, we have to invest in our human capital, in higher quality education that is closer to the economic needs of the country… we have to do many things. If we invest in health, education and focus a lot on security, there is a lot of talk about the rule of law, but it is very esoteric.

The rule of law means having police officers who take care of you, having prosecutors’ offices that do their job, courts that work and do it well, that you feel safe in the country is very, very important.

–In that sense, how much do security-related problems weigh when investing and doing business?

–It is very important, there are parts of the country that need strong investment in security and it is a shared responsibility, it does not depend only on the municipal, state or federal governments, it depends on society, industry, the private sector, we all have to put the safety as a top priority. A country has to provide security to its inhabitants, we need to ensure that this happens.

–Is it one of the main issues that an investor faces before coming to Mexico?

–Security is always present in conversations with foreign investors.

–And what else does the foreign investor see?

–They love Mexico. Before they came to see how we were doing, now they come to see where to hire people, where is the best place to put a plant, who is a good contractor to build, we are seeing that all the good wishes of the last two years of nearshoring They materialize in real investments.