Mirage Energy Corp (MRGE)

[Macod]

The third infrastructure package of the CCE-Hacienda is coming, and it will not be enough

MAY 16, 2022

We are halfway through the López Obrador six-year term. It is time for evaluations. And the two previous CCE infrastructure packages with the Treasury have not made a difference. With everything and be welcome (and of course, it is about 68 works for 525 billion pesos), but we must be honest: the packages do not make a difference. They do not unlock the problem of private investment.

The third infrastructure package was reviewed last Friday by Rogelio Ramírez de la O , Secretary of the Treasury, and the Business Coordinating Council, headed by Francisco Cervantes.

The third infrastructure package, being good news, shows a good relationship between the IP and the Treasury , although it does not unravel the enormous lack of confidence for private investment.

Private investment, in 2018, reached up to 19% of GDP. Today it does not exceed 17 percent.

Even public investment itself has been the same, a little over 3% of GDP, the same as we had in 2018.

With these figures, we barely reached 20% of total investment in the Mexican economy, well below the potential for growth, which should be 24 percent.

What happened? That private investment continues without certainty, in a framework where energy companies had changes in rules, where there are quarrels with several companies, and where investments (such as aeronautics) feel impositions.

THE POTENTIAL TO INVEST IS IMPRESSIVE

And it should be noted that the potential to invest is enormous. The potential to invest in the Mexican economy reaches up to 60 billion dollars. This is detailed in the strategic planning of the Business Coordinating Council.

This administration lost the potential for investment and, therefore, for growth.

The private sector continues to do damage control rather than seeing the government as its ally for potential investment.

And the government has been promoting its flagship works, as if they made a difference, when in reality, public investment has not grown.

The result, by not having more investment, neither public nor private, there is no growth.

This year we will be growing, again, and as if it were a curse, below 2%. We will not even compensate for the pre-pandemic economic size.

The Mexican economy will still be smaller at the end of 2022, compared to what we had in 2018.

The third infrastructure package is coming. Welcome, but not the cornerstone to unlock investment.

https://www.dineroenimagen.com/jose-yuste/viene-el-tercer-paquete-de-infraestructura-del-cce-hacienda-y-no-sera-suficiente/143985