The finance ministry announced budget cuts worth 0.7% of GDP at the end of last month as a "preventive" move in the face of a more adverse international economic environment.
This environment is according to the ministry due to factors such as the drastic fall in oil prices, financial volatility associated with the expected increase in US interest rates, and the overall slowdown of the global economy.
Reduced spending on infrastructure is part of the austerity measures, and this will have a negative impact on the insurance industry's growth, local daily El Economista reported Amis' head Recaredo Arias as saying.
Barclays Capital estimates that the announced budget cuts will reduce public investment by 11% in real terms this year.
Amis' initial 2015 projection was that insurance premiums would grow in the 7-10% range, but it could end up being lower due to the budget cuts, said Arias.
These cuts could also slow economic growth in Mexico this year, said Barclays and Capital Economics after the austerity measures were announced.
BNamericas will host the 4th Mexico Infrastructure Summit on February 18-19 in Mexico City. More information is availablehere.
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