Feb 18 • 19:59 UTC 🇲🇽 Mexico Milenio (ES)

Uncertainty will not cause the departure of large companies, but does pressure SMEs: IMEF

Gabriela Gutiérrez of the Mexican Institute of Finance Executives (IMEF) reported that while larger companies are unlikely to leave Mexico due to current economic uncertainties, small and medium enterprises (SMEs) will feel increased pressures.

In an interview, Gabriela Gutiérrez, president of the Mexican Institute of Finance Executives (IMEF), discussed the economic uncertainties facing Mexico, particularly the pressures they place on small and medium enterprises (SMEs). She indicated that although there might be a slowdown in investments and adjustments in certain sectors, especially in light of U.S. tariffs and the reconsideration of the USMCA trade agreement, there is no expectation of capital flight or large-scale closures of major industries. Gutiérrez noted that the highest levels of economic uncertainty were reached last year, yet there was no significant exodus of capital nor widespread company closures.

Gutiérrez pointed out that the inherent nature of large investments renders them less mobile; it typically takes around five years to dismantle a substantial operational setup, which is a deterrent against rapid relocation. However, she acknowledged that while large corporations may not be leaving, the economic environment is causing challenges for smaller businesses. The anticipated pressures on SMEs could lead to job reductions in some sectors, highlighting a disparity in how different sizes of companies cope with economic shifts.

Ultimately, Gutiérrez's insights reflect concerns about the broader economic climate in Mexico, the ongoing adjustments to labor laws, and trade dynamics with the United States. The situation underscores the need for robust support mechanisms for SMEs to navigate these pressures effectively and to stabilize the economic landscape as uncertainties persist.

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