Public investment will grow in 2022, but without blowing up the economy
November 17, 2021 | 05:00
An element that allows you to get a file sustainable economic growth It is a public investment. However, infrastructure projects in which resources are allocated must be evaluated and a cost-benefit analysis conducted to see the real impact they can have on the economy.
Although the investment projects of the government of Andrés Manuel López Obrador exceed 110,000 million pesos by 2022; There is no guarantee that mayan trends, filter in man and the Philip Angeles International Airport (AIFA) is a powerful stimulus to the economy.
Infrastructure projects in Mexico have a very limited regional impact. From our point of view, they are not blowing up economic growth projects.
The National President of the Mexican Institute of Financial Managers (IMEF), Angel Garcia Lacorin, said in a video conference.
The above was specifically commented on when comparing the infrastructure package signed by the President of the United States, Joe Biden for $1.2 billion, through which he seeks to advance his country’s economy.
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This infrastructure plan addresses the development of highways, ports, airports, and infrastructure that spurs economic growth, García Laquerín said.
The United States plan, 100% of Mexico’s GDP
Chairman of the National Committee for Economic Studies IMEFGabriel Casillas That the 1.2 trillion dollar plan represents 100% of Mexico’s GDP for a year It reveals how big the US economy is to start these kinds of projects.
According to Casillas, the plan of the United States will be reflected in Mexico by producing articles for export, Transfers and infrastructure projects in the tourism sector. However, the director noted that to achieve greater benefit, coordination is needed.
If in Mexico we want to benefit from this plan, there is a need for coordination, and I think in this meeting (AMLO, Joe Biden, Justin Trudeau) that the three presidents are going to have, they will talk about this coordination
Regarding the projects of the federal government, Casillas considered that there is “no planning” between the two economies, and although remittances will be an indicator, this is not the added value of projects in the United States.
Neglecting to prioritize the main business
By allocating more resources to the main business, other agencies as well as some entities in the country are being neglected, according to a study it conducted Mexico resides.
Focusing the budget on priority projects, especially in the Maya train, results in that only a few branches and countries will benefit the most, and spending on other priority items (given their importance in the economy) will be neglected,
The organization noted in a study.
México Evalúa highlights that 61.7% of spending on physical investment will be carried out in Campeche, Tabasco and CDMX, and the remaining 38.8% will be distributed in 29 states.
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In addition, the focus does not ultimately lead to the enhancement of human capital, because out of every 100 pesos the government will allocate for infrastructure, 44 pesos will be allocated to fuel and energy and only 2 pesos to education and health.
Thus, this panorama reflects that the effect will not end up being a driver of the economy, so GDP per capita will recover until 2026, According to IMEF estimates.
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