Simply Economics, from Mexico

Mexico’s Clean Energy Investment Facilitation, Spain’s Economic Growth Projection

Mexico announces plans to facilitate private investment in clean energy. Spain's economy is projected to grow by 2.2% by 2024. Gain valuable insights into Mexico's energy strategy and its impact on various industries. Explore the positive outlook for Spain's economy and the potential opportunities for investment and tourism.Sources:https://expansion.mx/economia/2024/07/03/ebrard-abre-privados-energia-limpiahttps://dirigentesdigital.com/economia/la-economia-espanola-crecera-un-22-para-2024/Outline:(00:00:00) Introduction(00:00:42) Mexico will facilitate private investment in clean energy: says Ebrard(00:02:16) The Spanish economy will grow by 2.2% by 2024

Duration:: 5m
Broadcast on:: 04 Jul 2024
Audio Format:: mp3

Mexico announces plans to facilitate private investment in clean energy. Spain's economy is projected to grow by 2.2% by 2024. Gain valuable insights into Mexico's energy strategy and its impact on various industries. Explore the positive outlook for Spain's economy and the potential opportunities for investment and tourism.

Sources:
https://expansion.mx/economia/2024/07/03/ebrard-abre-privados-energia-limpia
https://dirigentesdigital.com/economia/la-economia-espanola-crecera-un-22-para-2024/

Outline:
(00:00:00) Introduction
(00:00:42) Mexico will facilitate private investment in clean energy: says Ebrard
(00:02:16) The Spanish economy will grow by 2.2% by 2024

Good morning, and welcome to Simply Economics from Mexico. It's Thursday, July 4th. On today's show, Mexico's Foreign Minister Ibrard announces plans to facilitate private investment in clean energy, while the Spanish economy is projected to grow by 2.2% by 2024. Plus, stay tuned for more economic news from around the world. This coverage and more up next. I'm David, and you're listening to Simply Economics from Mexico. Mexico's President-elect Claudia Shinebaum has made it clear that energy will be a key factor in determining the pace of investment in the country. Our correspondent has more details on this and other economic priorities for the incoming administration. Bella, what can you tell us about the role of energy in Mexico's investment plans? Well, David, President-elect Shinebaum has emphasized that in addition to significant public sector investment, facilitating private investment in the energy sector will also be crucial. The goal is for the state-owned utility CFE to have a 54% share of the market, with private businesses taking their remaining 46%, but to reach that level of private participation, the new administration recognizes it needs to create conditions that enable investment and streamline the authorization process. And it sounds like strengthening economic ties with Japan is another priority. What areas of cooperation are being discussed there? The incoming economy secretary Marcelo Ibrard has described Japan as one of Mexico's most promising economic partners. Clean energy and electromobility are two key areas where increased cooperation with Japanese companies is anticipated. Other sectors on the bilateral agenda include aerospace, water treatment, and the naval port and logistics industries. In fact, President-elect Shinebaum has proposed a major simultaneous investment in at least 12 Mexican ports, which Ibrard called a giant challenge for the country. Clearly, the new administration has ambitious economic plans that will require close collaboration between the public and private sectors, as well as with international partners like Japan. Thank you, Bella, for that update on Mexico's investment outlook under its incoming leadership. Turning our attention now to Europe, Spain's economy is exceeding expectations and is set to be one of the main economic engines of the Eurozone in 2024, according to a new report from Koface. The credit insurance company has revised its growth forecast for Spain upwards to 2.2% by the end of the year, a significant increase from the 1.3% estimated at the beginning of the year. Here with more details is our correspondent. So what factors are driving this positive trend in the Spanish economy? The Koface report highlights several key factors contributing to Spain's economic strength. Firstly, the external sector, particularly tourism, has been a major driver. The first quarter saw record figures in foreign tourist arrivals and spending, exceeding pre-pandemic levels by 10% and 20% respectively. This boost in tourism has provided a significant uplift to the economy. And what about domestic factors, how are investments and household consumption fairing? Investments have rebounded after two negative quarters, driven by both capital goods investment and construction. This positive trend is expected to continue, largely thanks to the acceleration in the application of next-generation funds from the European Union. Household consumption has also remained resilient, increasing by 0.3% quarterly. This is attributed to the resilience of purchasing power with easing inflationary pressures and rising wages supporting consumer spending. The report also looks at the global economic picture. What insights does it provide on the world economy? The Koface barometer concludes that the world economy has rebounded slightly in the first quarter of 2024 compared to previous years, although global economic, social and political risks persist. Koface has adjusted the ratings of five countries and 26 sectors, indicating only positive short-term prospects. The World Growth Forecast for 2024 has been improved to 2.5%, with stabilization forecast at 2.7% in 2025. Moderate growth in the United States and China is expected to be offset by acceleration in several emerging countries. And finally, what does the report say about the economic situations in the U.S. and China specifically? Despite the slowdown in the U.S. economy, labor market figures appear to have returned to pre-pandemic levels, indicating a better balance between labor supply and demand. In China, the economic rebound remains uneven. GDP exceeded expectations in the first quarter, thanks to investment in the manufacturing sector. However, this has intensified concerns about excess production capacity. Given the weakness in domestic demand, Chinese producers will need to find outlets in foreign markets. Additionally, persistent deflationary pressures could continue to curb the income of companies and households in China. Thanks for breaking down Spain's economic outlook and the broader global landscape. And with those insights, we wrap up our stories for today. Thanks for listening to Simply Economics from Mexico. We'll see you back here tomorrow. [MUSIC] [BLANK_AUDIO]