Infrastructure, energy plans to accelerate Mexico growth
Secondary legislation on Mexico’s energy reform and the national infrastructure plan were taken optimistically this week
Mexican GDP will "accelerate" towards 4.3% next year, partly
because of infrastructure and energy plans detailed by the
government this week, analysts say.
||Enrique Peña Nieto announces the
2014-2018 National Infrastructure Plan
Source: Presidencia de la República
Enrique Peña Nieto’s administration put
forward secondary legislation on energy reform to the Mexican
senate on Wednesday, spelling out the fine print of plans set
out last year.
That followed the government's unveiling of a MXN7.75trn
($596bn) four-year infrastructure investment plan earlier in
The infrastructure package calls for 70% more investment
— from private and public sources — than that
under a similar plan by the previous administration. It was
well-received by markets, with analysts describing it as
"substantial" and "ambitious".
"[The plan] should go a long way to ensuring that the
economy is Latin America’s relative out performer
over the coming years," David Rees, emerging markets economist
at Capital Economics, said in a research note on Thursday. "As
such, we continue to expect GDP growth to accelerate from last
year’s disappointing 1.1% towards 4.3% next year."