Reforms Will Support Economic Growth, Mexican President Says

laht.com

MEXICO CITY – In a report to legislators on his government’s programs, Mexican President Enrique Peña Nieto has highlighted the importance of five structural reforms in the economic field designed to boost the country’s productivity and growth over the long term.

In the 571-page document delivered to congress on Tuesday, the president provided details about the programs and actions carried out over the past year.

In the section dedicated to one of the five goals of the government to achieve a “prosperous Mexico,” Peña Nieto referred to the adoption of reforms covering the telecommunications, economy, energy, financial and fiscal competency fields, as well as regulatory laws.

Mexico “advanced in the installation of specialized courts” for telecommunications, broadcasting and economic competition, and the creation of a regulatory body to ensure the “efficient development” of the sector and equitable access to infrastructure, the report says.

In financial terms, the reforms aim to foster cheaper credit for sectors with greater growth potential, such as small and medium-sized enterprises, while the prosecutor strengthens public finances to ensure resources for projects that promote development.

The income policy is directed to “promote the formality” and provide a “more efficient and modern tax system” to the state-owned company Petroleos Mexicanos (Pemex) and exercise “responsible expenditure” to boost growth and job creation.

Concerning energy reform, the regulatory legislation of which was hardly promulgated in August, he stressed that it will guarantee the long-term supply of energy at competitive rates and will also scale up Mexico’s appeal as an investment destination.

Regarding economic development, Peña Nieto said that the recovery continues in accordance with the year, while in the first quarter growth was lower than expected, “affected by various reasons of temporary nature.”

In the second quarter of 2014, the GDP grew at an annual rate of 1.6 percent and increased by 1 percent in seasonally adjusted figures, compared with increases of 0.4 percent and 0.2 percent registered in the first quarter of 2014 and in the fourth of 2013.

“This figure confirms a significant acceleration in the Mexican economy,” the president said in a report marked by general tone of optimism about the scope of the last year.

While the projection of GDP growth for 2014 is 2.7 percent, a rate “higher than the average of last 14 years” but less than 3.9 percent as planned initially.

“It is imperative to continue working on a suitable secondary legislation of the structural reforms approved in 2013” to “maximize” growth, he said.

The government of Peña Nieto said that the structural reforms would allow the sustainable growth of the country at a rate higher than 4 percent. In 2013, the Mexican GDP barely grew by 1.1 percent.