Background on the Mexican Economy and Current Situation
The Confederation of National Chambers of Commerce, Services, and Tourism (Concanaco-Servytur) has expressed concern over the potential increase in product and fuel prices, as well as disruptions to global supply chains due to ongoing military conflicts.
Who is Concanaco-Servytur?
Concanaco-Servytur is a prominent Mexican business organization that represents various sectors, including commerce, services, and tourism. It plays a crucial role in advocating for the interests of Mexican businesses and promoting economic growth.
Reactions from Business Leaders
Octavio de la Torre, president of Concanaco-Servytur, urged the Mexican Secretariats of Economy and Foreign Relations to engage in dialogues with the private sector. The aim is to develop medium-term strategies that safeguard trade, tourism, and competitiveness amidst unstable international scenarios.
Impact on Mexican Economy
De la Torre highlighted that the escalating tensions could lead to higher fuel prices, affecting Mexican imports and exports. José Ignacio Martínez Cortés, coordinator of the Commerce, Economy, and Business Analysis Laboratory at UNAM, echoed these concerns, stating that the uncertainty caused by recent military attacks on Iranian nuclear facilities (Fordow, Natanz, and Isfahan) will likely result in oil supply crises.
- Increased fuel prices: The crisis will likely cause a rise in combustible fossil prices, impacting the importation of gasoline, gas, and diesel. This will eventually lead to higher inflation.
- Supply chain disruptions: The United States faces increased costs in supply chains, along with rising manufacturing expenses due to tariffs imposed by the Trump administration.
- Stock market pressure: The immediate effect will be a negative impact on the stock market, further straining Mexico’s already fragile economy teetering on the brink of recession.
Economic Outlook and Challenges
The Centro de Estudios Económicos del Sector Privado (CEESP) noted that, despite previous optimism regarding Mexico’s economic recovery, the current situation shows clear signs of weakness.
- Lowered growth expectations: Although the Mexican government remains confident in Hacienda’s projections of a 1.9% GDP growth in 2025, this estimate represents a downward adjustment from the previous prediction of 2.5%. In some cases, growth expectations for this year are already negative.
Mexico’s economy is vulnerable and exposed to significant risks, both domestically and internationally. The country’s economic fragility is exacerbated by external factors, particularly the impact of U.S. tariff policies.
Call for Responsible Action
Concanaco has urged business leaders to act with responsibility, clarity, and a commitment to national well-being during these global crises. The Mexican business sector must serve as a pillar of stability, peace, and prosperity.
