Mexico: immune to global risks

To Ricardo Carbajal for his concepts

In the current situation, there is a considerable amount of international risks that, if they materialize, would detonate even more effects than those suffered in the economic, migratory, poverty and war fields. The board is full of incidents which leads us to understand that there is no more room for more risks. We are witnessing the formal beginning of the economic, technological and military conflict between China and the US for world domination in the next century. At the same time, Russia has been occupying Ukrainian territories for months in a conflict in which both the West and the East defend such antagonistic interests that the Ukrainians themselves are baffled. With the above, the energy crisis is seriously affecting the most developed economies in Europe which, coupled with high inflation levels, puts the region on the verge of a deep recession. Additionally, we observe the tensions in North Korea and Taiwan, nations that respectively have military capacity and considerable influence in the production of vital microcomponents for the future of electronics. Lastly, we are feeling the decline of economies with levels of inflation not seen in decades and, as a consequence, severe monetary adjustments. We are witnessing the emergence of a new economic and geostrategic era.

In this complex scenario, Mexico is exempt from these risks directly or indirectly affecting our economy. The reason is clear, it is our proximity to the US that obviously shields us from what is happening in the international environment. To a lesser extent it is, 29 years of business partnership despite the recent siege of the trilateral trade agreement. Under this logic we can argue that, for example, the conflict between the US and China only benefits our country. The same can be said of the energy and food crisis resulting from the war in the center of Europe, while the European region will struggle for a while, Mexico will be tied to the economy that will move forward better and faster. The global monetary squeeze does not have a major impact on the peso/dollar parity, moreover, it has caused the rate differential to cause our currency, together with the Brazilian real, not to have suffered losses like most currencies. The recurring tensions with North Korea are part of the tensions on the Asian continent. In short, there is no risk from abroad that currently affects our country or its future expectations; on the contrary, Mexico is on the verge of being the nation that has benefited the most from international political-economic instability.