Economy

Mexico's government unveils second investment package worth $11.4 billion

The package heralds a further thawing in what have often been frosty relations between AMLO and business groups.

A view of Mexico city skyline
A view of Mexico city skyline during a sunset, in 2011. Photo: REUTERS/Carlos Jasso/File Photo
  • The investments are aimed at lifting Mexico’s ailing economy and creating much-needed jobs;
  • Carlos Salazar, head of Mexico’s Business Coordinating Council (CCE), said the investments could lead to the creation of some 400,000 new jobs in the country.

Mexico‘s Finance Minister Arturo Hererra on Monday announced the second package of 29 infrastructure investments assembled between the government and the private sector worth some MXN 228 billion ($11.4 billion).

The package follows an initial 297-billion-peso raft of investments set out last month and heralds a further thawing in what have often been frosty relations between Mexican President Andres Manuel Lopez Obrador and business groups.

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The investments are aimed at lifting Mexico‘s ailing economy and creating much-needed jobs.

“I estimate that for the next quarter, the first three months of next year, we will return to the situation we were in before the pandemic. That is my forecast that we will be able to recover, and we will begin to have greater economic growth,” said Lopez Obrador.

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Carlos Salazar, head of Mexico’s Business Coordinating Council (CCE), said the investments could lead to the creation of some 400,000 new jobs in the country.

To Expansión, Jorge Nuño, head of the Investment Unit of the Ministry of Finance and Public Credit (SHCP in the acronym in Spanish), explained that the projects in this second plan met four criteria: A participation of the private initiative greater than 50% of the total investment; focus on crucial sectors such as energy, communications and transport, tourism, water, sanitation, and the environment; have a clear definition of social benefits, and have no impact on the country’s public debt.

Salazar also told Expansión that there would be a third part of the plan, which will be presented to the executive when it is ready.

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