The economic strategy of the current Federal Government has not worked, as stated by the person who was still in this administration, the president of the Consar, Abrahan Vela, given that the public debt has increased considerably, not as an effect of the pandemic but of government decisions. being an obstacle to having healthy finances.
In addition to gross fixed investment, which has been reduced from a level of over 20% of GDP at the end of the administration of Enrique Peña Nieto to a level of less than 16% of GDP. Which sends a clear signal that Mexico will not be able to recover the level of income per inhabitant that it had in 2018.
And regardless of whether the economy is showing signs of strength, this country cannot aspire to have growth rates of the economy that it had. Which in themselves were already very low, that is, it will be difficult for us to see rates of 2.3% for the economy again and less for investment.
And it is that, it is a reality, says Vela Dib, the Federal Government, whatever it may be, cannot do everything. The growth of the country is a set of strengths and private initiative is essential. It is true that the Mexican economy does not show a serious concern, otherwise they would have already removed the investment grade, but there is a deterioration in public finances, sending a signal of a weak government in terms of health, education.
In addition to this, investments are stagnant in the housing and automotive sectors, two pillars of economic and labor development.
Under this panorama of vulnerability, strategies and reforms that provide legal certainty should be sought.
Environment in which the Afores should also have their key points, so that older people do not become a time bomb. Given that the informal economy is growing and the appetite for long-term savings via Afores, despite the fact that they are a viable scheme, it is far from reaching at least half of the population.
As far as pensions are concerned. While it is true that the savings system in Mexico in 1997 has been very beneficial for more workers to have a pension, however, achieving decent savings still has a long way to go.
Of the salary, 12 or 15% is still insufficient according to international schemes, hence it will be essential not to lower our guard and look for that 25% that is recommended so that we do not really have a population in trouble at the time of their withdrawal, which translates into an unsustainable tax burden.
Benefits of the Afores. Of course, today it is a transparent and inclusive system. Anyone can enter the Afore, whether under a formal regime or within the informal economy.
But, encouraging voluntary savings is an incipient practice (2% of system savings, 5.1 billion pesos, 20% GDP).
Anyway, 25 years of the pension reform and progress? Yes, but it is essential not to lower our guard and to continue advancing towards shielding the Mexican population that has more and more, a higher standard of living, a more deteriorated quality and an economic environment that does not favor it much.
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