Economics: The government announces a new recovery plan
The Ministry of Economy recently announced what it labeled as a new "Economic Reactivation Plan for 2022" that addresses four axes or pillars: the internal market; the promotion of investment projects; international trade; and competitiveness. Yet another list of good intentions from the current administration, the Plan suffers from customary deficiencies by consisting of a rehash of previously announced objectives on which nothing has been accomplished to date and by failing to specify what projects might contribute to such a reactivation, much less what funds might be needed for their realization. The announcement comes at a time of serious deterioration of public investment, which according to Inegi figures had been consecutively falling since 2009 and only experienced a very weak and insufficient recovery year over year through the first three quarters of 2021.
As a complement to the Reactivation Plan, the Ministry of Finance announced this past week that in the coming days it will announce a third tranche of joint investment packages with the private sector, even as the administration has yet to report any evidence that the first two such packages, dating back to 2020, have materialized, achieved any advances, or been the recipients of investment. Given that track record, there is considerable skepticism as to how much impact a third package might deliver.
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