Banxico survey on obstacles to Mexico’s economic growth, Digi Mart USA News (Mexico City): Public insecurity is among the main obstacles to Mexico’s economic growth, while crime leads the difficulties that businesspeople face when doing business, according to the October survey of the Bank of Mexico (Banxico).
The lack of rule of law, impunity and corruption also stand out among the concerns of the specialists consulted, who assigned governance the highest level of concern among the areas evaluated for their possible effect on growth.
The central bank collected opinions from 40 economic analysis and consulting groups from the national and foreign private sector. Responses were received between October 19 and October 29.
When identifying factors that could hinder economic growth, public insecurity problems accounted for 15% of responses, the same percentage as foreign trade policy.
In an additional question about difficulties doing business in Mexico, crime ranked first with 24% of responses. It was followed by the lack of rule of law at 22% and corruption at 20%.
These three factors together accounted for 66% of responses on obstacles to business activity, according to the survey results among private-sector specialists.
The survey also asked participants to rate, on a scale from one to seven, how much the various factors could limit growth, where one means minimally limiting and seven means very limiting.
Insecurity problems, along with issues related to the lack of rule of law, impunity and corruption, received concern ratings equal to or above five.
Foreign trade policy, the absence of structural change in Mexico, international political instability, public sector debt, and domestic economic and political uncertainty also fell within that range.
Regarding the distribution of responses on the main obstacles to growth, after insecurity and trade policy came the absence of structural change in Mexico, at 11%.
International political instability and other rule-of-law problems each accounted for 8%, while uncertainty about the domestic economic situation received 7%. These factors completed the list of main risks to growth identified by the specialists consulted.
