Investment: Better Late than Never

MEXICO - Report 21 Feb 2014 by Jesus Reyes Heroles G.G.
Two weeks ago the relationship between investment and growth was analyzed here.There were still some aspects to be developed. Within this context one month ago, the Federal Government made a decision of great importance for public, private, and joint investments.For the first time in decades, the Social Discount Rate (SDR) was reduced from 12 to 10%.This rate is critical since it is used to evaluate public investment projects and to decide whether or not they are carried out.The minimum rate is used to decide on public projects, thus affecting private ones. The reduction implies that projec...

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