On Sept. 19, a 7.1 magnitude earthquake struck Mexico City, destroying billions of dollars worth of homes, businesses and infrastructure. The local and surrounding economies took an expected downturn following the disaster, but analysts are confident that reconstruction efforts will spur growth across the nation. Internationally acclaimed broker Pablo Soria de Lachica explains that investment opportunities will be ample throughout the recovery efforts.
The week after the earthquake, Alfredo Coutino, Latin American director for Moody’s Analytics, reported a preliminary estimate that Mexico could lose between 0.1 and 0.3 percent off their gross domestic product (GDP) in the third and fourth quarters. For the full year the impact will be small as funds are expected to pour into the economy as the federal government releases disaster funds. As of June, the city’s disaster fund stood at 9.4 billion pesos (more than $500 million), making it slightly larger than the national holding. Mexico’s education ministry also has 1.8 million pesos to spend on repairs. The large sum will be necessary–Mexico City officials recorded the number of affected properties at 7,649, with 321 buildings considered uninhabitable, and only 676 of the city’s 9,000 schools have been inspected and cleared to resume class.
As construction companies are hired to begin rebuilding efforts, Pablo Soria de Lachica believes that investors would be remiss not to place their money in the Mexican economy. The Sept. 19 earthquake hit on the anniversary of another one in 1985 that took the lives of more than 10,000 people and caused GDP to plunge by an estimated 2.39 percent, causing many to fear the financial chaos would repeat itself as well. Analysts including Soria de Lachica have since downplayed that fear–Mexico’s public finances are a lot stronger than they were thirty years ago, and the country has been able to absorb the shock relatively well. Economist Rafael Camarena of Santander bank has kept his growth forecast steady at 2.5 percent for 2017. “In general economic activity is already returning to normal,” said Camanera. One key sector, tourism, may take a hit, but strong performances in construction and infrastructure will ensure the Mexican GDP remains steady throughout the rest of 2017.
Pablo Soria de Lachica is an internationally acclaimed broker and foreign exchange expert. A graduate of the Universidad Tecnologico de Mexico, where he received a Master of Business Administration, Pablo went on to specialize in international trading and soon became a leading authority in forex, an area he taught himself. Today he is able to offer clients an impressive range of trading options combined with competitive terms that meet the needs of new investors as well as experienced financial analysts. Pablo Soria de Lachica presently collaborates with Kartoshka, an innovative company at the forefront of the latest technologies in sales, telemarketing and customer support. He offers a unique perspective and professional guidance on international trading by developing online tools, conducting market analysis and overseeing day-to-day business operations across various branches.
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