Chihuahua.- If the reform to the Judicial Branch is approved, it could generate a “black September” with economic consequences that could lead to an end-of-term crisis like never before seen in the last 30 years in the country, warned Juan José Sierra, national vice president of Business Centers of the Mexican Employers’ Confederation (Coparmex).
During a tour of Chihuahua’s business districts, he explained that if this initiative is implemented and the elimination of autonomous bodies is carried out, it will harm the pockets of all citizens.
As a precedent, he said, there is the exchange rate, which before the June 2 elections was quoted at 16 pesos per dollar and today is close to 20 pesos.
It is inconceivable, he said, that given the great opportunity the country has with nearshoring, the peso is fighting to be the most depreciated currency in the world, which has consequences in terms of inflation for citizens.
This, he mentioned, is coupled with the fact that the markets are sending out signals or red flags regarding the country’s sovereign rating, which also has an effect on the payment of interest on the debt, since the lower the rating, the higher the financial cost.
He added that analysts have adjusted growth downwards in the country, which, according to the Center for Economic Studies of the Private Sector, a one percentage point drop in growth means 200 thousand fewer jobs and a hole in the country’s financial coffers of 53 billion pesos, which in the end ends up being paid by taxpayers.
Another aspect to consider, he said, is that the ambassadors of the United States and Canada, Ken Salazar and Graeme Clark, respectively, have expressed concern about the reform of the judiciary.
He indicated that given the opportunity for nearshoring in the country, it is necessary to provide the rule of law, the legal certainty that investment requires, as well as guarantee the supply of electricity and security.
He pointed out that the figures for the last quarter in relation to Foreign Direct Investment (FDI) reveal that 97% was reinvested profits from companies that already operate in the country and around 2.6% are new, which is a contradictory figure with respect to what they are promoting and the opportunities that exist in terms of economic development.
He stressed that it must be clear that economic development will come from private investment, not from the government, which has deficit budgets, so it does not have the capacity to invest in ways that would create jobs.
“This is what we want as Coparmex, businessmen and citizens, for the country to generate economic development and, as a consequence, new, better-paid jobs and, with this, social development. The country’s economic development has to go hand in hand with social development,” he stressed.
Another fact that is raising alarm bells in the country as a result of the reform of the Judicial Branch, he said, is that in the last quarter, capital in the order of 8,233 million dollars left the country.
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