Mexico City.- Irene Espinosa, deputy governor of the Bank of Mexico (Banxico), urged not to spoil efforts to boost nearshoring in the face of the political noise generated in recent days due to the progress of the package of constitutional reforms that includes a change to the Judicial Branch.
“It is important to have a long-term vision. We should not be held back by the current situation (reform proposals); we must build an institutional framework and regulation to maximize the opportunity for nearshoring and Mexico’s potential for growth,” said Espinosa during the second day of the Third Binational Convention organized by the American Society of Mexico.
The central bank official said that the country requires annual financing of 8 percent of the Gross Domestic Product (GDP) to achieve the objectives of the 2030 Agenda for sustainable development, in order to attract investments that allow taking advantage of the relocation of production chains. “When we talk about nearshoring, Mexico has sectoral challenges and needs to have sufficient financing for infrastructure, energy and water.
“To achieve the goals of the 2030 Agenda, annual financing of around 8 percent of GDP will be required. We need quality financing that promotes sustainable investments,” said Espinosa.
The deputy governor highlighted that, within the advances made in the last four years, Mexico created a Sustainable Finance Committee in which all financial authorities participate, as well as banks and Retirement Fund Administrators (Afores), with the objective of generating a financial system that allows capital to be raised with a focus on sustainability. At the same forum, María Consuelo Pérez, general director of S&P Global Ratings Mexico, agreed that among the challenges that the country faces in relocation is the water stress faced by various entities, which makes it less attractive for companies to set up on national soil. “Capital is not still. If the conditions are not met (access to water and renewable energy), companies can move to another part of the world,” emphasized the S&P director. In addition, the specialist pointed out that Vietnam is a country with better preparation in the energy sector, so the Asian country is a direct competitor of Mexico to attract investment flows under the nearshoring scenario. For his part, Rafael Muñoz Moreno, lead economist for equitable growth, finance and institutions for Mexico at the World Bank (WB), said that the country is a leader in sustainable finance within the group of emerging economies, but requires a partnership with the private sector to materialize the opportunity to relocate production chains.
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