The companies became pessimistic and one month after Claudia Sheinbaum’s electoral victory, they warned that it is not the time to invest in Mexico and that the economic climate is not conducive to doing business.
Through the Survey on the expectations of economic specialists in the private sector, the Bank of Mexico (Banxico) reported that 44% of organizations indicated it is a “bad time” to invest.
The bank reported that the proportion of private specialists who do not plan any investment grew from 27% to 44% during June, just after the election results where Sheinbaum and Morena won the presidency and the majority in Congress.
Another 46% of analysts indicated that they are “not sure” about making investments and only 10% were very optimistic and indicated that it is a “good time” to invest in new productive projects.
Banxico pointed out that, when asked about the business climate in Mexico, during the next six months, specialists expressed that “0.0%” of companies expect an improvement in this matter.
He noted that 50% of analysts considered that the conditions for doing business will worsen during the second half of 2024; a figure that represented a large increase of 13 percentage points compared to the month before the June 2 elections.
The other 50% of the experts indicated that the business climate will remain the same, without changes compared to the first part of the year, when 56 out of 100 companies did not expect any improvement in this regard.
The Bank of Mexico indicated that when questioned about whether Mexico’s economy is better than a year ago, only 28% of business representatives said that the country’s economic progress is better. While a rate of 73% of those surveyed were forceful in stating that the performance of the national economy is no better than 12 months ago, counted between June 2023 and the same month of this year.
