Introduction and Relevance of the Investment
According to writer Jorge Wagensberg, “progress is gaining independence from the uncertainty of the environment.” In economics, investment is the heart of the entire economic body. It enables job creation, technological development for increased productivity, establishes production and export chains, and has positive multiplier effects on all economic activities. However, it’s not just any investment; it’s about fixed assets that serve to produce goods and services.
In our country, investment in fixed capital has contracted for 13 consecutive months, contributing to near-zero economic growth in 2025 and exacerbating a prolonged period of stagnation. Only sustained, growing investments leading to an expansive dynamic can overcome this situation.
Private Sector’s Response: $40 Billion Infrastructure Investments
In response, the private sector recently announced a decision to invest $40 billion in 38 infrastructure projects. This level of resource allocation could push the investment coefficient to 25% of the national GDP, potentially resulting in a 4% economic growth rate.
Global Evidence: High Investment Coefficients and Economic Growth
Internationally, there is evidence that high investment coefficients explain high and sustained economic growth. China, for instance, has allocated 30% of its GDP to investments in fixed assets and has experienced high economic growth rates. The same can be said of India, Indonesia, Vietnam, and South Korea.
Development Policy Fundamentals
A development policy is like a spider’s web with four fundamental threads: 1) a stable macroeconomy, 2) a competitive microeconomy, 3) investment in human capital, and 4) an extensive network of international relations.
Countries that internationalize can benefit from globalization’s advantages. China exemplifies its openness to the world, leading in manufacturing production and exports, boasting a $1 trillion trade surplus, and owning half of the world’s patents. India has developed remarkable technological advancement, a significant consumer market, and multiple political alignments.
Mexico, due to its proximity to the US and the T-MEC, has seen significant development in exports, which account for 36% of its GDP. Export production relies heavily on imported intermediate inputs, making domestic supply an essential part of industrial policy.
Living in a Global Economy
We live in a global economy where countries opting for autarky risk remaining underdeveloped.
Key Questions and Answers
- What is the significance of investment in economics? Investment is crucial for job creation, technological advancements, productivity increases, and establishing production chains. It’s about fixed assets that produce goods and services.
- Why has our country experienced economic stagnation? Our country’s fixed capital investment has been contracting for 13 months, contributing to near-zero economic growth in 2025 and prolonged stagnation.
- How is the private sector addressing this issue? The private sector plans to invest $40 billion in 38 infrastructure projects, potentially pushing the investment coefficient to 25% of the national GDP and resulting in a 4% economic growth rate.
- What does international evidence suggest about investment and economic growth? High investment coefficients, as seen in China, India, Indonesia, Vietnam, and South Korea, correlate with high and sustained economic growth.
- What are the key elements of a successful development policy? A stable macroeconomy, competitive microeconomy, investment in human capital, and extensive international relations network are fundamental to a successful development policy.
