Mexico unveils private-backed $14 billion investment plan to lift ailing economy

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Mexico unveils private-backed $14 billion investment plan to lift ailing economy
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Mexico's government presented an almost $14 billion infrastructure investment plan on Monday as President Andres Manuel Lopez Obrador seeks to repair rocky relations with business leaders and lift the struggling economy.

MEXICO CITY - Mexico’s government presented an almost $14 billion infrastructure investment plan on Monday as President Andres Manuel Lopez Obrador seeks to repair rocky relations with business leaders and lift the struggling economy.The package, mostly privately financed, is the first clear sign of corporate bosses’ readiness to invest under Lopez Obrador since the coronavirus pandemic plunged Latin America’s no. 2 economy into its biggest slump since the Great Depression.

“We have no problem with business leaders. On the contrary, they deserve our utmost respect and admiration because they invest, generate jobs and create welfare,” he said alongside some of Mexico’s most prominent industry chiefs. The resulting chill in investor confidence that set in helped to tip Mexico into a mild recession in 2019 before the pandemic battered the global economy.

This year, leading forecasters expect Mexico’s economy to contract by up to 10% or more. Lopez Obrador has resisted calls to splash out to counteract the effects, keeping a tight rein on public purse strings to avoid going into debt.

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