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Why did this country become one of the most attractive markets to invest?

Whatever it is, Mexico remains one of the most open and attractive emerging markets for foreign trade and investment in the world, despite the economic uncertainty it is going through.

Not only internal but external

According to market research and advice from, the economy will continue to grow later this year and throughout 2020. In this regard, Oliver Cornock, chief editor of OBG, commented that “despite the challenges External and internal facing the economy in 2020, Mexico remains one of the most promising markets that Oxford Business Group covers. Although the current uncertainty about the global economy cannot be ignored, the expected ratification of the T-MEC and the CPTPP in 2020 by all participating countries should solidify Mexico’s position as one of the most open and relevant economies in 2020″. Harry van Schaick, Latin American editorial director of OBG, said that internal infrastructure projects, especially the railway, will contribute to promoting investment and economic development in the southern and southeastern areas of the country. “Some of the main structural challenges that must be addressed during the next decade is to reduce the socio-spatial inequality that exists between the states of the Mexican territory. A greater role of state governments and an investment in infrastructure projects by the federal government could be the axes that trigger the economic growth of less developed states”.

Afore XXI Banorte adopts the Code of Professional Conduct of the Investment Manager of the CFA Institute

The institution became the first Administrator of Retirement Funds in Mexico to adhere to this international benchmark of high ethical standards in investment. With this, it joins the more than one thousand institutions that already comply with it all over the world. The code describes the ethical and professional responsibilities of companies that manage assets on behalf of customers. With it, instead of evaluating the code of conduct of each company separately, customers can quickly identify companies that are committed to a common ethical foundation.

“By adopting this code, Afore XXI Banorte not only joins a select group of asset managers from around the world, but confirms its commitment to the fiduciary responsibility it has with its more than 8.6 million customers”, said Mtro . Juan Pablo Newman, General Director of Afore XXI Banorte.

“We applaud Afore XXI Banorte, and all the companies that have adopted the code, for making positive changes that reinforce and keep their investment processes stable, as well as for taking measures that demonstrate their high level of commitment to ethical and professional standards” said Leilani Hall, Director of Standards and Professional Conduct at the CFA Institute.

Cemex will invest in X3 Builders, startup based in Baja California

CEMEX Ventures, the CEMEX Corporate Venture and Open Innovation Capital unit, announced its investment in X3 Builders, a vertically integrated contractor that combines project design, materials contracting and construction services to offer its clients a integral solution, as well as a continuous transition from design to construction. This startup, based in California, is a new contractor concept because of its 100 percent technological approach. It offers real-time quotes during the design phase to reduce uncertainty due to the variation in costs and additional redesign efforts. It also systematizes the selection of materials and operates directly with suppliers to contract them, eliminating delays in waiting times and deliveries. Its own software helps to manage processes from beginning to end, simplifying the complexities that arise in the construction and automates much of the accounting and administration of a project.

X3 Builders was founded just over a year ago, however, the employees of this startup

They have extensive experience in the construction industry and in the world of entrepreneurship.

They started exploring payment automation and extended their solution to automation of the complete management of the work. Their experience has helped them to include solutions to day to day needs.

Citibanamex Survey of Expectations

Expectations about cuts to the monetary policy rate in 2019 remain unchanged. A large majority (20/24) of the participants in the Citibanamex Survey of Expectations, continue to anticipate that the next move in the Banxico interest rate will be a 25bp cut in November.

The consensus forecast for the policy rate at the end of 2019 remains at 7.25%. However, by the end of 2020, the median estimate of the funding rate is now at 6.50% instead of 6.75% a fortnight ago. Projections of the weight for 2019 remain stable. The exchange rate forecasts for the end of the year have remained fairly stable during the last 3-4 months. The dollar-peso parity is still expected in 19.80 at the end of 2019, exactly as in our last two surveys. By 2020, the consensus adjusted its exchange rate expectations towards a stronger peso, now at 20.10 versus 20.42 pesos per dollar previously.

The consensus predicts that annual general inflation stood at 3.0% in the first half of October. Respondents expect the INPC to increase 0.43% in the first half of October, which implies an annual increase of 3.04%, slightly higher than the 3.01% recorded in the previous fortnight.

For core inflation, analysts expect a biweekly increase of 0.16%, which implies 3.71% annually, practically the same as the 3.72% observed during the previous fortnight. General inflation expectations for the end of 2019 decreased slightly to 3.11% from 3.14%, while by 2020 they remained at 3.50%. Regarding core inflation, the consensus increases its forecast for the end of 2019 to 3.62% from 3.60% a fortnight ago, while maintaining its corresponding expectation for 2020 at 3.40%.


Also published on Medium.

Published inStartups

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