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AMLO and businessmen announce ambitious plan to reactivate the Mexican economy | The NY Journal

AMLO and businessmen announce ambitious plan to reactivate the Mexican economy | The NY Journal

AMLO and businessmen announce ambitious plan to reactivate the Mexican economy | The NY Journal

MEXICO – Given the impact caused by the pandemic of the coronavirus in Mexico, President Andrés Manuel López Obrador and the business sector announced a package of projects for reactivate the national economy.

The infrastructure plan that consists of 39 projects is for more than 297,344 million pesos (about $ 13,850 million dollars), in the sectors of communications and transportation, energy, water and the environment, said the president during his morning conference, from Palacio National.

In the plan, which represents 1% of GDP and would create up to 195,000 jobs, the public, private and social sectors participated, the president stressed, Andrés Manuel López Obrador.

“The three engines that are required to reactivate the economy, it is very important that we all know that we could not alone, the public sector could not only reactivate the economy as needed,” said López Obrador.

For its part, Carlos Salazar, president of Business Coordinating Council He said that with this agreement the interest of the Presidency in the private sector is reiterated.

“The message is sent that we seek to have the certainty and certainty of which we have spoken and the Presidency of Mexico returns to reiterate its interest in private investment, in the importance of working together and together,” Salazar said.

“All this will ensure that we work together for that objective that the private sector promised with the President to promote public and private investment in our country and that it reaches 25 percent of GDP and that through that we take advantage of the advantages competitive ”.

Salazar said that among the actions to follow is seeking to finance public infrastructure projects where the private contribution will be 50 percent of the total cost of projects. Also, take advantage of T-MEC and recover tourism promotion through the maintenance of roads, passenger trains, rehabilitation and construction of airports, and improved security.

Of the 39 projects announced this day, seven are already under execution for a value greater than 38,000 million pesos (more than $ 1,770 million dollars), he said. Arturo Herrera, head of the Ministry of Finance and Public Credit (SHCP).

Of the amounts announced, he stated that 196,231 million pesos ($ 9,167 million dollars) correspond to communications and transportation, 2,133 million pesos ($ 99.6 million dollars) to water and the environment, and for the first time five energy projects are included per $ 98,980 million pesos ($ 4,625 million dollars).

These projects would start this year and in 2021, while those that remain to be announced would start in 2022 at the latest, said Jorge Nuño, head of the Investment Unit of the SHCP.

The importance of the plan lies in the fact that 87% of the country’s investment comes from the private sector, argued the head of the Office of the Presidency of the Republic, Alfonso Romo.

This announcement signifies a rapprochement between the Government and businessmen, who this year had clashed due to the management of the economic crisis of the pandemic, the change in energy policy and the new food labeling.

“We recognize the willingness of your government, Mr. President, to maintain dialogue, open dialogue and exchange ideas with the private sector,” said Antonio del Valle, president of the Mexican Business Council.

Alfonso Romo, head of the Office of the Presidency, concluded by pointing out that private investment is the best vaccine to fight the economic crisis.

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“Private consumption is going to slowly recover. The best vaccine that Mexicans have to fight against economic paralysis is private investment. Private investment is the hope to get out of the crisis, because it represents 87 percent of the country’s total investment, and it is vital for growth and well-being ”, he added.

Millionaire plans

The president and the Private Initiative had announced in November a first package of 147 infrastructure projects with private investment for about 859,022 million pesos (more than $ 40,000 million) to promote economic growth.

But the pandemic of COVID-19, which in Mexico accumulates almost 80,000 deaths and more than 760,000 cases, changed the forecasts of the private sector with an annual contraction of 18.7% of GDP in the second quarter of the year and the loss of 1 million formal jobs.

Even so, the president of the Business Coordinating Council (CCE), Carlos Salazar, reiterated this Monday the goal of public and private investment reaching 25% of GDP.

With information from agencies


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