Sign Banking Presentation New Mexico Computer

Industry sign banking new mexico presentation computer

good evening everyone my name is Paul Young I'm going to walk you through government policies for Mexico now my presentation will be one perspective of Mexico it's not deemed to be the only perspective and you're more than welcome to go out to different websites from Reuters to Wall Street Journal banka Canada Export Development Corporation or other sites to get a different perspective of Mexico especially its economy government policies to understand what's truly going on there a little bit brought by boat myself I'm a CPA CGA betrayed but I have 25 years of experience across sections from academia to industry to financial solutions so I'm going to talk about the Mexico government I will talk a bit about GDP and they get a little bit more syria's of the government policies from banking to taxation infrastructure and all that now you can't start our conversation and a conversation without talking about the governmental and struck structure within a country in the case of Mexico they've had stable government for the last four years what basically it's happened there is we the president prieto has brought in a lot of reforms and key sectors like the financial service sector education telecommunication and energy the key idea was as he wanted to be more foreign direct investment into state-run companies as well as basically allowing that diversification happened the economy to support growth and he's really was promoting growth and that's one of the things he's been able to do in certain sectors the problem that he's found out now recently some of the policies that he's focused on has not returned the foreign direct investment by and some of that is like the key energy sector that hasn't really grown and that's keas aspect of the when you look at depending the pin points of the structural changes he want to do oil was one of those areas however Mexico has benefited in key areas like automotive sector they've seen a lot of investment in manufacturing specs to the automotive and I'll get into more specific details about the economy but the key aspect is he's made some improvements but some of the other things that he's driven have not been as successful in as Mexico approaches a new election he hasn't been able to do a lot of the reforms that he said he was going to deliver so his approval ranking has fallen by nine percent in over a year you cannot have to talk about Mexico you have to talk about GDP it's up thirty percent since 2006 but the key driver there eighty percent of the economy is driven by exports that's critical because if you're driven by exports are driven like dependencies on worldwide conditions of country you're doing business with whether that's Brazil China US Canada if they're going through periods a slow economic growth that's going to have impact on your GDP because most of your GDP is driven by exports and that's something to bear in mind New Mexico economy is predicted and 4 2016 to grow between two to three percent this year that's almost equal to work global growth is targeting so we your global growth is targeted at three percent so Mexico is just below that but it's almost close to where global growth is now part of the reason that it's going to struggle it's going to be based on the US economy because Mexico is basically joined at the hip with the u.s. in terms of economic growth you also have to talk about government deficits because certain governments are going around the world saying we need to spend more money I haven't found any governments of the presentations I've done that are any governments that are in a surplus position most governments revenues are under pressure but they still are spending money as part of the overall fiscal management cycle so that's something that's not truly grass when people are talking about the issues what they should be saying is what governments are in a surplus position and whatever debt-to-gdp ratios are ground the world that's what should be discussed and that hasn't been discussed in Mexico's financial position is they have been in deficits for the past few years when we talk about government we have to talk about key policy some infrastructure foreign direct investment inflation taxation rates Mexico has done some work on modernization of infrastructure it's still a critical issue that there's still haven't modernized enough so if you're making key business decisions especially in Mexico you're running in a huge issues on infrastructure and infrastructure can lead to productivity issues and that's something to bear in mind when you're making investments and that's something that's influence in Mexico's capability to be stronger economically foreign direct investment Mexico has seen significant dollars come into its economy again a lot of that has to do with the way companies are looking to bring jobs back and investment back to North America and Mexico has seen that investment come back into the economy inflation it's pretty good they've done a good job of inflation it's only 2.4% corporate tax rates are thirty percent in its consumption tax or sixteen percent the banking sector Mexico is very healthy and very strong it's very well capitalized and that's what you're seeing with this slide good you have when you go next to talk about government you have to talk about corruption Mexico still up there in the the lower tier in terms of countries where corruption is running rampant as the government tried to clean it up yes it tried to bring into new bills to bring more transparency but prieto hasn't been able to get those reforms past and that brings in a confidence issue with people because how do you move an economy forward when you're still seeing corruption ramp it to both state municipal as well as federal governments and that's critical and that's what you're seeing here as well we also need to talk about tree in a nutshell Canada Mexico we basically have significant amount of trade in two-way trade of 34 billion in 2014 now the biggest issue is is we have a trade deficit with mexico so despite having all these trade agreements one of the critical drivers is is either be in a surplus position with trade with a country or be in the balance of zero in a particular case with mexico we're in a deficit position that's something as we move forward to diversify exports we have to find ways to close these gaps down and Mexico is the key trading partner as you see since NAFTA came into play in 1993 its trade with Mexico to to a tree has grown by six hundred fifty percent so it's significant player in the export market and trade as we look at Canada's moving its economy forward as probably looking at foreign investment agreements foreign foreign investment protection agreements I mean as well as trade agreements now this was only one perspective of Mexico I've got other presentations in other countries but it's kind of give you an idea that mainstream media hasn't been dealing with some of the issues that are domain to a country some of the issues that are domain to an industry and it's all about different policies in terms of moving economies forward most of what you're hearing about that's dominating the news is climate change you are not hearing critical issues within countries that are driving challenges though for those countries to move forward with modernization or create the conditions that will bring business investment in to help that middle class thrive that's something that needs to be discussed more these presentations are done in each country gives you the political atmosphere is what's happening with these countries whether they're left winging left-wing governments or right-wing governments what their policies are and what those policies are impacting both domestically and internationally I've done several different presentations on countries to get people an understanding of reforms because people are going out there saying we need to spend money and on economies that are sluggish well you have to be smart how you spend that money the critical aspect is you don't just throw money to say you want to throw money at what you need you have to be targeted with those investments that make sense whether that means more rd help bring products to market whether that means expanding ports and rail systems allow exports whether that means closing down some of the gaps in different areas on environmental assessments it's the whole gamut and one of the key aspects here when we talk these policies and look at government are they making the right decisions in critical aspects are they being driven by some sort of other agenda and that something means your meeting isn't calling old enough about bad policy that policies have ripple effects to an economy business cannot take a lot of pressure a bad policy bad policies put a lot shocked and awed to those companies they have to make decisions where the invest money is based on that so when you hear conversations make that's something you need to discuss with your local politicians where their municipal provincial or federal oh you should never take anything at face value so by a going to Mexico presentation gives you an idea what's going on in that country it also tells you how important it isn't turns a Canada in the global economy and that's something that as you move for and have that discussion you should ask those questions thank you you