The Secretary of Finance, Edgar Amador, presented a strategy to boost economic growth by 0.7 percentage points and generate 700,000 additional jobs. This strategy is based on increasing government purchases and the substitution of imports. Amador emphasized that the initiative aims to impact various variables of the Gross Domestic Product (GDP) with the goal of increasing economic growth.
According to Amador, if the economy grows by 2.0 percent this year, with the implementation of the strategy, a growth of 2.7 percent would be achieved. To reach this additional growth, a 10 percent increase in government purchases and a 10 percent substitution of manufactured imports are proposed, as well as stimulating domestic demand through social programs.
At the morning conference at the National Palace, it was highlighted that government purchases represent approximately 11 percent of GDP, considering all levels of government. Amador stressed that Mexico is a global manufacturing powerhouse, with a percentage of GDP dedicated to this sector of 20 percent, compared to about 14 or 15 percent in Europe.
Experts are analyzing the strategy proposed by Amador. Luis Adrián Muñiz from Vector Casa de Bolsa believes that the initiative facilitates the export of Mexican products to the United States by complying with the rules of origin of the USMCA. However, he warns that the substitution of imports could lead to price increases and inflationary impact.
Gabriela Siller from Banco Base points out that this strategy involves a risk to public finances by increasing spending on government purchases, and goes against efforts to consolidate them. On the other hand, Alfredo Coutiño from Moody's Analytics highlights the importance of productive investment for sustainable long-term economic growth.
Coutiño mentions that economic policy stimuli can boost short-term growth, but the true source of growth comes from productive investment that increases productive capacity and promotes technological development. Experts also warn about the rigidity of public spending and the possible negative impacts of excessively protecting the national industry and stimulating consumption through social programs.
