Economists Urge Mexican Government to Prioritize Investment for Growth

A group of approximately 100 economists has called on Mexico's government and Congress to place investment, legal certainty, and macroeconomic stability at the forefront of the 2027 budget discussions. Their objective is to "recover" what they deem insufficient economic growth and ensure the sustainability of social advancements.

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is indispensable for elevating productive capacity

The specialists, representing universities, research centers, business organizations, and consultancies, have compiled more than 50 concrete proposals. They plan to submit this document to the Ministry of Finance and Public Credit (SHCP) and the relevant congressional committees on finance, budget, and economy.

Discussions highlighted the indispensability of both public and private investment for enhancing productive capacity. However, economists noted that uncertainty and shifting regulations cause businesses and households to postpone decisions. Ana María Aguilar, coordinator of the SME table, pointed out that while total investment remains above 22% of GDP, Mexico requires more resources for its infrastructure needs. She also clarified that a significant portion of foreign direct investment consists of reinvestments by existing companies, indicating stability rather than new plant openings.

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a signal of permanence

Regarding fiscal matters, Héctor Villarreal of Tecnológico de Monterrey suggested a reevaluation of the current system due to a structural deficit, increased spending pressures, and limited options for further cuts or underspending. Other recommendations included reviewing pension expenditures, expanding revenue sources, improving spending quality, and strengthening state governments' revenue responsibilities. The group also advised against making public investment overly reliant on private partnerships for non-viable projects.

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requires a rethinking

The SME discussion focused on informality, with Aguilar stating that two-thirds of small and medium enterprises operate informally, restricting their access to credit and growth potential. Experts proposed simplifying formalization processes, increasing financing and training, and integrating small businesses into global value chains. Another group advocated for boosting public and private investment in research and development, offering tax incentives, and establishing a long-term strategy for applied artificial intelligence.

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two out of three operate outside of formality