Feb 10 • 08:49 UTC 🇲🇽 Mexico El Financiero (ES)

Lessons for Mexico to Grow Again: The Case of Dubai

The article discusses the economic challenges Mexico faces in regaining growth, drawing lessons from Dubai's economic model.

The article reflects on the historical economic growth experienced by Mexico during the 1950s and 1960s, which gradually declined after financial crises in 1976 and 1982. It highlights that this growth was supported by currency stability, low inflation, and sound public finances. Investors generally require a degree of economic certainty for long-term investments, as they expect a return that covers several years. Instabilities such as legislation changes, tax increases, shifts in local currency value, and concerns over legal or physical safety can significantly affect the feasibility of recovering investments.

The piece emphasizes that Mexico can extract valuable lessons from Dubai, particularly in the realm of creating an attractive investment climate. The ability of a region to shock investors with stable economic conditions is crucial, including a favorable regulatory environment that encourages long-term commitments. By ensuring that potential risks are minimized, investors are more likely to place their capital in Mexico, which ultimately fosters development and job creation.

The commentary concludes by urging Mexican policymakers to adopt strategies reminiscent of Dubai's successful economic initiatives, focusing on predictability and reliability in economic governance. This shift could pave the way for a rejuvenated economy capable of aligning past growth trajectories with modern demands, thereby restoring confidence in Mexico as a viable place for substantial investments.

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