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Investors Remain Confident in Mexico Despite NAFTA 2.0 and Upcoming Elections

By: Elena Toledo - @NenaToledo - Sep 12, 2017, 4:30 pm
Mexico
News about Mexico’s financial atmosphere right now comes out of a recent Global Asset Holders Survey conducted by the Sovereign Wealth Fund Institute (SWFI), which surveyed regions managing $1.012 trillion in assets. (Huella Minera)

EspañolPowerful investors who move the most important capital in Mexico — including sovereign funds, pensions and government funds — said that neither the 2018 presidential elections nor the renegotiation of the North American Free Trade Agreement (NAFTA) will have a negative impact on their investment decisions. In fact, many expect their portfolios to improve.

Mexico’s economy grew for the 16th straight quarter this August, but inflation continues to pose problems for the country, making the financial landscape somewhat cloudy for investors, especially with so many political factors up in the air.

News about Mexico’s financial future comes out of a recent Global Asset Holders Survey conducted by the Sovereign Wealth Fund Institute (SWFI), which surveyed regions managing $1.012 trillion in assets. It revealed that their allocation of assets will increase and even become “overweight” in the next 12 months.

According to the opinion poll, 61.5 percent of investors in Mexico will maintain a similar fiscal position during the next 12 months and 23 percent said they actually expect their position to improve. Another 15.4 percent expect to reduce their investments.

So far in 2017, the participation of investors in Mexico has been significant. Until last August, they registered a corporate debt of US $6.9 billion, representing a decrease of only 6.6 percent in investments for all of 2016, according to data from Citibanamex Casa de Bolsa.

Other aspects proving to be important for investors on a global scale in 2018 include US tax reforms as well as the behavior of oil prices, as they are considered to be the main factors driving stock prices over the next six months.

Source: El Financiero

Elena Toledo Elena Toledo

Educator by trade, social-media apprentice, activist for a democratic Honduras, and free thinker. Follow her on Twitter @NenaToledo.