Mexican Business Leaders Target 25% GDP Investment Boost

Mexican business leaders are pushing to significantly increase national investment, aiming to reach 25% of the Gross Domestic Product (GDP). The Coordinating Business Council (CCE), representing 80% of Mexico's GDP, emphasizes that national private investment must be the primary engine for achieving this ambitious economic goal and accelerating growth.

José Medina Mora, president of the CCE, highlighted during the 'Investment in Infrastructure as a Growth Driver: Opportunities of the Mexico Plan' forum that while public investment is crucial, it must be complemented by private capital, foreign investment, and long-term financing. The Mexico Plan outlines investments totaling 5.6 trillion pesos (approximately $329.4 billion) by 2030. To meet these objectives, the CCE proposes a phased increase in investment, first to 25% of GDP, then to 28%, and finally to 30%, aligning with the government's aspiration for Mexico to climb from the world's thirteenth-largest economy to the tenth.

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the most important is national private investment.

Medina Mora stated, "Of course, public investment is important and everything adds up," but stressed that "the most important is national private investment." The CCE outlined the necessary conditions for mobilizing this capital: technically solid and financially viable projects, legal and regulatory certainty, and an adequate distribution of risks and long-term financing. They also pointed to development banks as catalysts for structuring projects, complementing financing sources, and mobilizing resources toward strategic infrastructure.

Progress has been made, with the Mexican government reportedly removing investment obstacles for projects worth about $3.5 billion since May 4. Medina Mora noted that early in the year, businesses identified bureaucratic delays and tax administration issues hindering investments. The government's response included four decrees and the creation of an investment council led by Claudia Sheinbaum, which meets weekly. Additionally, new timelines have been set for the Federal Commission for the Protection against Sanitary Risks (Cofepris), with deadlines of less than 30 days for strategic projects and a 90-day 'fictitious affirmative' if no response is received. Regarding the USMCA trade agreement, the private sector prefers to wait for a favorable arrangement rather than accepting a "bad quick deal."

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From el sector privado preferimos esperar antes que alcanzar "un mal arreglo pronto".