February 2018

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Pablo Soria de Lachica Examines How Mexico is Set-Up for Innovation

With the 13th largest economy in the world (11th in terms of purchasing power and 10th most populous), Mexico sits abreast of the largest and most competitive international economic markets of our times. In 2017, the Mexican economy defied lackluster predictions for financial health by posting above average GDP growth. While much of this success was linked to trade, market analyst Pablo Soria de Lachica explains that structural reforms by the current administration have led to a freer private sector, open to dynamic business formations characterized by innovation and technology-driven enterprises. The Mexican government has steadily increased expenditures on research and experimental development,from 0.4% of GDP to 1% by 2018. This includes considerable investment in agencies such as CONACYT (Consejo Nacional de Ciencia y Tecnología-National Council for Science and Technology) who receive upwards of $2.2 billion annually, despite cutbacks to other sectors. A large portion of CONACYT funding is directed towards sustainable/renewable energy, health and green development. Pablo Soria de…

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Pablo Soria de Lachica Discusses Inflation Prognosis for Mexico

After a year of reactionary fluctuations that began to steady in the later part of 2017, Mexico’s inflation rate appears poised for a stable decrease heading into 2018, barring any setbacks to the peso’s exchange rate. Pablo Soria de Lachica, internationally recognized broker, discusses the country’s long term inflation outlook, expressing cautious optimism moving forward after an eventful 12 month period that witnessed the nation’s currency hitting a 16-year high in September. Mexico’s inflation rate averaged 25.19 percent from 1974 until 2017, peaking at 179.73 percent in February of 1988, with an all-time low of 2.13 percent in December of 2015. Likewise, the beginning of 2017 was somewhat tumultuous for the peso, evidenced by a record low against the U.S. dollar during early January, when it dwindled to 22.0 MXN/USD. This was attributed to widespread pessimism towards the future of the North American Free Trade Agreement (NAFTA) following the 2016 United States…

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Pablo Soria de Lachica Highlights Investment Opportunities Created by Mexican Market Liberalization

Following the conclusion of a years long process to liberalize the domestic fuel market, gasoline and diesel prices are no longer subject to government control anywhere in Mexico. As of November 30, the Finance Secretariat (SCHP) announced that fuel prices were fully deregulated, effective immediately, and that it would cease publishing daily maximums. Financial analyst Pablo Soria de Lachica discusses several new investment opportunities that are arising as large oil companies and other players welcome the news of eased government control. Soria de Lachica explains that the liberalization process began in 2013, when Mexico’s government launched a sweeping overhaul of the country’s energy sector that opened the oil, gas and electricity industries to foreign direct investment. Consequently, energy companies and those in related industries, both Mexican and international, recognized sizable opportunities in a rapidly evolving environment — both in the provision of infrastructure and the wholesale of fuel and supplies. Nearly half of the country’s pipelines…