MEXICO IS POSITIONED for the third consecutive year as one of the most complex countries to invest inaccording to the TMF Group Global Business Complexity Index.
The ranking of the consulting firm headed by Mónica Vera that evaluates the ease of doing business in various jurisdictions, places Mexico in it fourth placedue to difficulties that present certain formalities administrative and regulatory.
Among the factors that contribute to this complexity are the long time needed for open a bank account and the various requirements to get a work visa.
The report also highlights the progress that Mexico has achieved in digitization of business processes.
The implementation of systems such as billing and the electronic signatures has significantly simplified the accounting and other administrative aspects.
These advances are vital in an environment where efficiency and the transparency They are increasingly valued by investors.
Another important aspect is the improvement of the requirements for prevention of Money Laundering; Although this has meant an increase in audits for companies, it has also increased investor confidence in the safety and legality of operating in Mexico.
These efforts are part of a broader picture spanning 79 jurisdictions representing 93% of global GDP and 88% of foreign direct investment flows, according to TMF Group.
Since 2020, Mexico has experienced an additional boost thanks to the nearshoring phenomenon, especially by American companies.
The COVID-19 pandemic and trade tensions with China have led to USA to reconsider their supply routes, benefiting Mexico as a nearby destination, with competitive costs and the adequate infrastructure to support manufacturing operations.
Companies wishing to establish themselves in Mexico face significant difficulties, such as a shortage of qualified labor and long and complex procedures for starting operations.
Clarity in tax requirements is also an area that needs urgent attention to facilitate a friendlier and more predictable business environment.
To address these difficulties, Mexico is working to improve tax incentives and renegotiate tax treaties with the United States.
These efforts seek not only to attract more investment, but also to ensure that companies can operate efficiently and comply with regulations without facing unnecessary obstacles.
With appropriate measures, it is possible to transform these challenges into opportunities and position Mexico as an even more attractive destination for foreign investment.
THE JAPAN Credit Rating Agency (JCR) has ratified Mexico’s credit rating at “A-” with a stable outlook, on the eve of the presidential elections on June 2. This rating reflects the solid export-oriented industrial base, the flexibility of its monetary and exchange rate policies, and its resilience to external shocks. However, JCR points out that the oil industry needs modernization.
THE UNION ASSOCIATION of Aviation Flight Attendants (ASSA) accepted Aeroméxico’s third proposal, which includes a salary increase of 4.65%. In a vote with 384 workers in favor and 155 against, the strike scheduled for June 1 was avoided. The general secretary of ASSA, Ada Salazar, indicated that the agreement will be communicated to the airline and the federal government. The negotiations, according to the statutes, could extend until before the first minute of June. An audio of Salazar circulates mentioning that if the consultation were unfavorable, the company and the union would be closed, due to possible bankruptcy.
FINSUS REPORTED THAT its investments reached 9,100 million pesos (537.2 million dollars) in May 2024. The company registered a growth of 96% in 2023, going from 3,700 to 7,250 million pesos (428 million dollars) compared to 2022. Sofipo directed by Carlos Marmolejo highlighted the success and social responsibility of the company, which offers fair rates to savers and borrowers, leading its market and serving previously excluded sectors. With these results, Finsus projects a sustained operating profit from July 2024.
CASA DE BOLSA GBM has begun coverage of Ollamani, by Emilio Azcárraga, the company spun off from Televisa that includes Club América, the Azteca Stadium and the PlayCity casinos. Analysts set a price target of 60 pesos for ‘AGUILASCPO’ shares, anticipating a potential return of 40%. GBM highlights the combination of world-class physical and intangible assets and potential growth in soccer and casinos. In addition, the possible monetization of land and the commercialization of rights to the Azteca Stadium could increase the value. The recent victory of Club América reinforces the attractiveness for investors.
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