2014 Mexico City Blog: Reforms in Financial Services Panel and Undersecretary Fernando Aportela

By
Carin Zissis

What do Mexico's reforms mean for the country's economic growth, as well as for small- and medium-sized enterprises? Panelists explored these issues and more.

Speakers:

  • Carlos Mota, Journalist, El Financiero
  • Enrique De La Madrid Cordero, General Director, Bancomext
  • William Wheeler, President, Americas, MetLife
  • Guillermo Ortiz, Chairman, Grupo Financiero Banorte

Keynote Remarks:

  • Fernando Aportela,  Undersecretary of Finance and Public Credit, Secretariat of Finance and Public Credit

In a conversation on Mexican financial reforms, and the constitutional reforms overall, panelists debated how long it would take to for the country's economy to experience a positive impact, with some suggesting the process requires patience. 

Banorte's Guillermo Ortiz cautioned that there are two Mexicos—one that is highly productive and one that is not—and said that building financial inclusion is a key aspect of the financial reforms. He also said that economic growth is crucial, but pointed to signs of slow growth. The former central bank governor noted that, now that he is in the private sector, he is free to share his opinion and that, from his perspective, the financial refoms contain conflictive aspects.

MetLife's William Wheeler said that "it's still Mexico's moment" when compared to other parts of Latin America, but said that there is a need to be patience. Wheeler also said expectations may have been too high that Mexican reforms would have a short-term impact on GDP growth, adding that this year's bad winter in the United States may have had a greater effect.

Bancomext's Enrique De La Madrid said that not everything is long-term when it comes to the reforms, and that there are signs of change already in some sectors. For De la Madrid, this transition period of reform implementation offers as an opportunity for small- and medium-sized companies in Mexico to grow and acquire contracts with larger corporations. In particular, he stressed the importance of the energy reforms, saying there is a cost associated with not taking risks and that it will be necessary to take those risks when it comes to the energy reform.

As the closing keynote speaker, Undersecretary Fernando Aportela said Mexico is seeing an uptick in growth this year, with non-oil exports on the rise and 80 percent of them going to the United States. He pointed to signs of job creating in the formal sector, increased remittances, and low inflation. 

Watch a video of the panel and the undersecretary's remarks below (en español):

Part 2 of the panel and and the undersecretary's remarks (en español):