Simply Economics, from Mexico

Mexican Migrants: Economic Pillars in Two Nations

Uncover the profound economic contributions of Mexican migrants to both the U.S. and Mexico, as they play a crucial role in agriculture and remittances. This episode challenges immigration narratives and highlights the interdependence of these neighboring economies. Additionally, explore how public insecurity and external uncertainties impact regional economic development in Mexico, as reported by Banxico. Gain insights into the socio-economic dynamics and policy implications affecting growth and stability.Sources:https://www.newshidalgo.com.mx/migrantes-mexicanos-exponen-sus-aportaciones-a-la-economia-de-eua-y-mexico/https://www.elfinanciero.com.mx/economia/2024/12/13/inseguridad-publica-impacta-en-el-desarrollo-de-economias-regionales-alerta-banxico/Outline:(00:00:00) Introduction(00:00:38) Mexican migrants expose their contributions to the US and Mexico economy(00:03:20) Public insecurity impacts the development of regional economies, Banxico alert

Duration:: 7m
Broadcast on:: 14 Dec 2024
Audio Format:: other

Uncover the profound economic contributions of Mexican migrants to both the U.S. and Mexico, as they play a crucial role in agriculture and remittances. This episode challenges immigration narratives and highlights the interdependence of these neighboring economies. Additionally, explore how public insecurity and external uncertainties impact regional economic development in Mexico, as reported by Banxico. Gain insights into the socio-economic dynamics and policy implications affecting growth and stability.

Sources:
https://www.newshidalgo.com.mx/migrantes-mexicanos-exponen-sus-aportaciones-a-la-economia-de-eua-y-mexico/
https://www.elfinanciero.com.mx/economia/2024/12/13/inseguridad-publica-impacta-en-el-desarrollo-de-economias-regionales-alerta-banxico/

Outline:
(00:00:00) Introduction
(00:00:38) Mexican migrants expose their contributions to the US and Mexico economy
(00:03:20) Public insecurity impacts the development of regional economies, Banxico alert

(upbeat music) - Good morning and welcome to Simply Economics from Mexico. It's Saturday, December 14th. On today's show, Mexican migrants highlight their contributions to the US and Mexico economy and Banxico alerts that public insecurity impacts the development of regional economies. This coverage and more, up next. I'm David, and you're listening to Simply Economics from Mexico. We start off with a focus on Simply Economics, where we delve into the significant contributions of Mexican migrants to the economies of both the United States and Mexico. Recently, President Claudia Chaimbaum-Pardo highlighted these contributions through the testimonies of individuals like Adela Leon and Feliciano Reboyar in California and Celine Partita in Chicago. Joining us to discuss this further is our correspondent. Can you tell us more about the impact these migrants have on the US economy? - Certainly. The testimonies shared by President Chaimbaum-Pardo underscore the vital role Mexican migrants play, particularly in the agricultural sector. Adela and Feliciano's experiences highlight that seven out of 10 farm workers in the United States are of Mexican origin. Their labor is crucial, especially during the pandemic, when they were recognized as essential workers. Without their contributions, many American households would face shortages of essential food items. - That's a significant statistic. How do these contributions translate into economic terms, particularly in terms of revenue and remittances? - Celine Partita's testimony from Chicago provides a broader economic perspective. Mexican immigrants generate approximately $320 billion annually in the US economy. Of this, over $60 billion are sent back to Mexico as remittances. The remaining amount, which is reinvested in the US economy, is four times greater than what is sent to their families. This reinvestment supports local businesses and contributes to economic growth in the United States. It's fascinating to see how these contributions are not only vital for the US economy, but also for Mexico. How do these remittances impact Mexico's economy? - Remittances are a significant source of income for many families in Mexico, providing financial stability and supporting local economies. They help in reducing poverty and improving living standards. Moreover, the flow of remittances strengthens the economic ties between the two countries, highlighting the interdependence of their economies. Given the scale of these contributions, how do they fit into the larger economic picture of North America? - Mexico, Canada, and the United States together account for 30% of the world's gross domestic product. The economic activities and contributions of Mexican migrants are integral to this figure. Their work not only supports the agricultural and service sectors, but also fosters economic integration across the region, enhancing the overall economic resilience of North America. The contributions of Mexican migrants are indeed a cornerstone of economic activity in both the United States and Mexico, reflecting a deep and beneficial economic partnership. However, public insecurity has emerged as a significant internal challenge for businesses in certain regions of Mexico, while externally, the new administration in the United States is causing uncertainty. This is according to the latest information from the Bank of Mexico or Banxico. Joining us to discuss these developments is our correspondent. Let's start with the issue of public insecurity. How is this impacting businesses, particularly in the tourism and commerce sectors? - The impact of public insecurity on businesses, especially in tourism and commerce, is quite profound. Alejandra Salcedo, the general director of economic research at Banxico, highlighted that businesses are facing challenges in demand due to insecurity. This has led them to make strategic decisions, such as optimizing transportation routes and adjusting operating hours to mitigate risks. While specific incidents weren't detailed, the general sentiment is that businesses are having to adapt their operations to maintain demand and ensure safety. - In the recent report on regional economies, governance was mentioned as a major factor that could hinder economic growth. Can you elaborate on how governance issues are affecting different regions? - Certainly. The report indicates that governance is a critical concern, particularly in the central north, central and southern regions of Mexico, where it is seen as the primary obstacle to economic growth over the next six months. In the northern region, it ranks as the second most significant concern. This governance issue is intertwined with other risks, such as deteriorating public security, persistent inflation, high interest rates, and insufficient public investment. These factors collectively create a challenging environment for economic activity. - There's also mention of uncertainty due to legislative reforms and fiscal consolidation. How are these factors playing into the economic landscape? - The uncertainty surrounding legislative reforms is indeed a significant concern. Businesses are wary of how these reforms might affect the economic environment, especially with the planned fiscal consolidation for 2025, which could lead to reduced public investment. This uncertainty is compounded by the potential for lower than expected public investment at both state and federal levels, which could stifle economic growth. However, there is a silver lining, as some executives believe that infrastructure investments might exceed expectations, potentially spurring private investment, turning to the external factors. How is the situation in the United States influencing Mexico's economic outlook? - The economic relationship with the United States is crucial for Mexico, and any slowdown in U.S. growth could have significant repercussions, particularly for exports. There's also uncertainty about U.S. policies on international trade and migration, which could affect regions in Mexico that are heavily linked to the U.S. market. This includes areas in the North and Central regions, as well as those with historical ties to migration. The indirect effects of these external shocks could ripple through the entire Mexican economy, affecting interstate economic relations. - Thank you for providing these insights into the complex economic landscape for Mexico. And with that, we wrap up our stories for today. Thanks for listening to Simply Economics from Mexico. We'll see you back here tomorrow. (gentle music) [BLANK_AUDIO]