CAPITAL: Progress in the imbalance of the trade balance

By Edgar González Martínez

In June it accumulates 4.5 billion dollars

When Andrés Manuel López Obrador assumes the presidency of Mexico, he will find a country broken commercially in his relations with the world. Indeed, as of June 2018, the trade deficit accumulates $ 4.5 billion. Thus, it is urgent that the virtual president of Mexico accelerates the negotiations to reach an agreement with the NAFTA countries, and prevents the advance of this imbalance in the trade balance. Only last June, the deficit was 897 million dollars compared to the 0.8 million surplus recorded in May. According to Citibanamex, "this figure was much higher than our expectations, as we expected a deficit of $ 252 million and $ 283 million, respectively."

As exports increase, they fell short of our expectations. Exports have increased 5.5% per year while we estimate 8.9% per year. The moderate increase in exports is attributable to a 3.6% annual increase in non-oil exports, while oil exports grew by 41.0% per year. All components of non-oil exports were weaker than expected, especially manufacturing exports, which rose slightly by 3.5% a year, while forecasting solid growth of 5.7% per year.

Imports are slightly worse than our estimates. Imports increased 8.0% annually, while we expected 9.6% per year. Imports of consumer goods grew by 9.4% a year (we expected 15% a year), intermediate goods by 7.5% (we expected 9.0% a year) and, as positive news, stronger asset performance with Cemex will continue to sell assets and reduce operating costs

Cemex has reported strong results in Mexico, the United States and Europe; while he continued to present complications in the blocks [Centro, Sudamérica y el Caribe] and [Asia, Medio Oriente y África] which yielded below expectations. Sales increased + 6.6% (vs. + 6.8% e), while EBITDA increased + 2.5% (vs. + 3.4% e). The report reads positively because, at the same time as the sequential recovery is confirmed, the company has announced that it will continue to sell assets for an amount of between $ 1,500 and 2,000 million (starting in the second half of the year). 2018). ), and will implement actions to reduce costs by $ 150 million to improve profitability. Thus, they plan to reduce their debt by $ 3,500 million by the end of 2020 (nearly a third of the current debt) and pay dividends as of 2019.

Small businesses and industries, the ones that generate the most jobs in Mexico

Small businesses and local businesses are the main sources of employment for the country. According to INEGI figures, 78% of paid jobs in Mexico are generated by micro, small and medium enterprises (MiPymes), which make up 99.8% of the country's businesses. In this sense, consuming local products strengthens the SME sector and strengthens the economy generated by the creation of jobs. Zaide Solis, founder and director of México Presenta a platform that encourages local consumption, explains that by buying products and services made in Mexico by small and medium-sized Mexican companies, in addition to what we consume The distribution and production chain behind the products is strengthened, because, as the main source of employment in Mexico, the injection of capital into the operation of these companies will result in more than 39% of the total revenue. jobs with better wages. The majority of small businesses in the country acquire and distribute local products, which, in turn, are made with raw materials from the region, mainly. Their trade and consumption reinforce the fact that they continue to produce, from their origin, jobs to perform all the activities behind them, their production, transportation, distribution and trade.

Total substitution of products from abroad is not possible, and in some cases it is not practical either. "There are things that are not produced in our country, and that it is not possible to replace them with others." isolate from the world or stop trading with other countries, but support those who produce and offer quality goods or services, because their growth helps keep people, "says the director of México Presenta.] Mexican boy of 10 years, in the international motocross tournament

The company EB Capital through its founding EB Movement became a sponsor of Alessandro Carminati , who is the only child in the world to participate in the "Red Bull X-Fighters", considered the most important international freestyle motocross tournament.Carminati, a 10-year-old boy from the State of Mexico, has quickly shone worldwide in motocross.He is the son of Maurizio Carminati, an Italian legend of Endu ro, and a mexican mother. In 2014, Alessandro at the age of 6 was invited to the "Red Bull X Fighters" where he made his routine and vibrated over 35,000 spectators at the monumental Plaza de Toros Mexico.

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www.agendadeinversiones. com.mx

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