Wednesday, March 29, 2023

Look at the business Solid actions against growth

The general report by INEGI on the behavior of inflation in February represented an improvement compared to what financial analysts had predicted for the second month of 2023 of 7.67 percent.

INEGI reported that inflation slowed in February and stood at 7.62 percent, compared to 7.91 percent registered in January. Despite this, inflation has been accumulating for 24 months outside the Banco de México target range of 3 percent +/- one percentage point.

Despite the measures and policies established by the central bank, it was almost impossible to meet the expectations of the government or the reduction of inflation in the market. Therefore, a call was made today by the federal executive to strike a new commercial policy with American countries to curb the increase in competition.

This measure is far from having a positive impact on the Mexican economy or having a tangible impact on inflation, since most of the imported products come from countries such as Asia, Europe and North America; In other words, no country located south of our border is even among the top 4 trading partners that Mexico has abroad.

From the Mexican economic sector, we do not consider the cancellation or reduction of tariffs on goods from Central and South America a measure that favors controlling and reducing growth in the country. This, because things are brought from the nations of the southern pyramid. The fundamentals are not Mexican industrial forces and therefore do not constitute a pillar of the generation of goods within the country.

Given this, it is necessary to analyze it from several angles. The first step is to supply a local supply; Likewise, it is essential to ensure security in the transportation and logistics of the trade to prevent an increase in the price of goods; as a third point, infrastructure development is necessary to facilitate and reduce the cost of transportation; and finally, it should be noted that consumption has increased somewhat after the restrictions due to the Covid-19 pandemic.

Although trade agreements are important, it is primary to strengthen or even increase those that already exist with the United States of America, Canada, the countries of the European Union and the Asian continent; countries that are already part of our production chain.

Contributing to major agreements with these countries, together with measures that promote the development of national industry, will gradually reduce the constant rise that the country shows. Strengthening the local economy strengthens the pockets of Mexican families.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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