President Enrique Peña Nieto has declared that during the first year of the current administration, “We have devoted our determination and our efforts to making the structural changes the country requires to have economic growth and social development,” and to “building the foundations of this great house we want for all Mexicans, where there will be greater well-being and development.”
During his participation in “Mexico Summit 2013: The Next Chapter,” organized by The Economist magazine, President Peña Nieto declared, “This government has not moved one iota away from what it pledged to Mexicans,” adding that work is underway to make the structural changes Mexico requires, “So that on the basis of this, we will be able to rebuild the country we all want for the benefit of all Mexicans with solid foundations.”
He said that in the current political and economic climate in Mexico, and if the transformative reforms that have been promoted materialize, the results of these actions will be seen in the short and medium term.
“I am convinced that next year our economy will grow, and that this will be accompanied by the creation of better conditions for Mexicans. I think we can look forward to the possibility of achieving results and benefits for everyone,” he said.
The president said that the world is recognizing the effort Mexico is making in terms of structural changes, “Because this contrasts with the situation elsewhere.”
He said that a Financial Reform has been promoted which has yet to be fully approved, which modifies 30 legal regulations and seeks to extend and expand credit levels in our country. He said that although the capitalization levels of Mexican banks are undoubtedly higher than those of banks in other nations, “Credit levels remain extremely low.”
“On average, credit levels in private banking in Latin America are nearly 48 percent, whereas in Mexico they are barely 28 percent. There is undoubtedly a window of opportunity to make the credit a lever to increase the economic development of our country,” he declared.
He declared that the Tax Reform has several goals: to strengthen the capacity of the Mexican state to provide a better response to the needs of the population, and to enhance the macroeconomic stability the country should have.
The president also referred to the Energy Reform. He stated that the country should take advantage of nature’s generosity, “And that now this should be accompanied by a policy to enable Mexico to successfully exploit its energy wealth, while making it quite clear that the Mexican state’s stewardship and ownership of hydrocarbons is a fundamental premise and a condition that will not be affected or changed. He added that this reform also proposes new mechanisms for the exploitation of the country’s energy resources.
He explained the main political forces and the government have submitted Energy Reform proposals, “And Congress will be responsible for the definition and scope of reform that is eventually approved.
He noted that although the government will continue working to advance the eventual approval of this reform, “Congress will be responsible for defining the point of reconciliation between the various proposals submitted in this respect.”
What I hope there will eventually be, he continued, is “A new legal structure that will make Mexico an energy superpower.”
He added that unless Mexico becomes a nation that exploits more widely and rationally, it runs the risk of having productive investments go elsewhere.
President Peña Nieto said that nowadays, the world has great expectations about what it has observed in our nation, “A Mexico that is changing, which is advancing an agenda of change and transformation, and is also inspiring confidence to invest in our country.”
He mentioned three indicators, “Which are encouraging signs of the confidence that is being generated in Mexico”:
• From the end of the first week of December 2012, when this administration began, to the first week in November of this year, the rate of return on 28-day Treasury Certificates (CETES) fell by 0.87 percentage points from 4.23 to 3.36, equivalent to a reduction of 20.6 percent.
• During the same period, Mexico’s international reserves have increased by nearly 11 billion dollars, representing an increase of almost seven percent.
• We have had foreign direct investment of nearly 24 billion dollars during the first semester.
“According to the latest report by UNCTAD, the United Nations Conference on Trade and Development, the FDI received by Mexico during the first half of this year exceeds that received by Germany, France, Italy, Japan and South Korea together,” he declared.
The President concluded by saying: “These are encouraging indicators that reflect the confidence that Mexico is projecting towards the rest of the world, and I think they will improve even further if the reform agenda we have set materializes.”