Mexico City.- The desire to invest in the country has decreased due to the uncertainty generated by reforms such as that of the Judiciary and the constitutional changes that would be achieved with the qualified majority that Morena would have in Congress, warned the Employers’ Confederation of the Mexican Republic (Coparmex).
In the first half of 2024, only 39.6 percent of Coparmex member companies intend to invest, which is 13.9 percentage points below the responses given in the same period in 2023.
For 48 percent of Confederation partners, uncertainty about the political context is the main obstacle to business growth, according to the Data Coparmex indicator.
Another 46 percent said that insecurity is the main factor that stops investments and the same proportion (46 percent) said that they do not invest because of uncertainty about the economic context.
José Medina Mora, president of Coparmex, reiterated that there is a setback due to the composition of the Congress that would give a qualified majority to Morena.
“The mood to invest is at levels similar to those we had during the Covid-19 crisis.
“There is a significant decline in the mood to invest, which reflects this increase in uncertainty related to the political context, especially in the face of a possible scenario of a qualified majority in Congress and with that the approval of reforms not only to the Judiciary but of 18 constitutional reforms,” said Medina Mora.
He even compared the moment with what Mexico experienced in the 1970s.
“The possibility of a qualified majority allowing the ruling party and its allies to modify the Constitution without the intervention of political forces would mean a regression in terms of democracy to the Mexico of the 1970s, where opposition forces could not intervene in the modification of the Constitution and in particular this qualified majority increases the legal uncertainty for investment,” he said.
On the other hand, Medina Mora warned that 51.3 percent of Coparmex business partners have been victims of some crime in the last year.
The crimes they have been victims of include theft of merchandise in transit, extortion or protection money, and theft of a company-owned vehicle.
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