Mexico’s economy can grow by 4%, says AMLO

Mexico’s economy can grow by 4%, says AMLO

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Mexico’s President-elect Andres Manuel Lopez Obrador (AMLO) affirmed that during his administration the country’s Gross Domestic Product (GDP) will reach an average growth of 4%. This figure is two percentage points higher than the Mexican economy’s average growth during Enrique Peña Nieto’s administration.

In order to achieve this goal, Lopez Obrador has made a commitment to work together with the country’s industrialists and members of the private sector, as well as civil society members.

“You know that we have not grown adequately in the last 35 years, we have an average rate of economic growth of 2% and that has prevented jobs from being created in the country. That is why the phenomenon of migration is very important as well as problems of poverty, insecurity and violence,” said the president-elect during a press conference, after meeting with members of the Confederations of Industrial Chambers (Concamin).

The goal for 2024 is said to make the economy grow at an annual rate of 6%, as how it happened during the so-called period of stabilizing development. 

Recently, Alfonso Romo, the next head of the President’s office, said that AMLO’s projections for the Mexican economy could become real. During his participation in the forum Estrategia Banorte, he explained that the government will seek to promote an environment of trust that allows companies to generate greater well-being.

Romo indicated that there is a lot of work to do in terms of insecurity, since this factor cuts 50% of the economic potential. 

The future administration has already expressed their plans to combat the country’s security problems. Lopez Obrador reiterated that his government’s security plan will be integrated together with representatives of the private sector and civil society.

“The security plan that we are going to carry out is a priority to our government. I have made a commitment that every day from very early I will head the meeting of the security cabinet, and we will report on the issue,” he said.

Other measures that will be taken during his administration to promote economic development is the decentralization of the federal departments and agencies with the objective of promoting “horizontal development,” explained AMLO.

“There are regions like the shoal in Quintana Roo, some border cities and some cities in the center of the country that have growth of 5, 6, 7 and 8%, but there are regions that decrease and therefore the national average is 2%. With decentralization we want all regions to be able to grow. It is neither fair nor advisable that government and private investment be concentrated in some regions of the country,” he said.

The first federal dependencies that are planned to be moved from the country’ capital are the Environment, which is expected to be located in Yucatan, and Tourism, to Quintana Roo.

Also, AMLO’s administration is looking to strengthen the education programs in the country, like the Dual Education program, which will support 2.6 million young people and help them integrate into a job while they work.

Romo indicated that the government program also includes a plan of 25 priority actions that will be launched as soon as the Lopez Obrador administration is sworn in on December 1.