Two tasks for emerging MexicoSeptember 30, 2013
"Two tasks for emerging Mexico" is the title of an article published in the latest edition of the online magazine "Global Business" by Ociel Hernández, BBVA Global Markets Research chief strategist in Mexico.
"Two tasks for emerging Mexico" is the title of an article published in the latest edition of the online magazine "Global Business" by Ociel Hernández, BBVA Global Markets Research chief strategist in Mexico. The magazine, published by BBVA Bancomer, also includes an interview with the BBVA expert discussing the economic situation in the emerging market economies.
In his article, BBVA Global Markets Research chief strategist in Mexico describes the two tasks facing the country if it is to achieve the productive investment of between 20% and 30% required to consolidate stability and growth. The first task is to implement a programme of institutional, legal and fiscal reforms to build a fairer, less complicated legal framework that is less costly for society. The second is to improve the supply and quality of products, in addition to leveraging on the country's natural advantages such as proximity to the world's main commercial markets.
In the interview published by the magazine, Ociel Hernández analyses the emerging Latin American economies, boosted by high commodities prices and the liquidity injections provided by central banks of developed nations. These huge injections of liquidity, coupled with the policy of keeping interest rates at all-time lows, have forced investors to seek more attractive returns in emerging markets allowing Latin America to obtain financing at low rates. The BBVA strategist also stated that Asian economies will continue to register the highest levels of investment among emerging markets despite the slowdown in China. Lastly, Hernández concludes that the emerging markets as a whole will gain further economic strength in the future and that most will join the select group of Emerging and Growth-Leading Economies (EAGLEs).