US novel Banking policies to obscure impact on Mexico payment industry: Ken Research
Elevated
vulnerability in the wake of the outcome of the US presidential decision
The
deficit was cut down by 1.1% of GDP from 2015 to 2016
Ken
research announce its recent publication on " Consumer Payments Country Snapshot: Mexico 2016" which concentrates on offering insightful
analysis of consumer payments market in Mexico, considering payment cards,
online payments, P2P payments and latest payment technologies such as mobile
wallets and contactless along with the regulations enforced in the market and
how they have evolved. Furthermore, it has explored the online payment market
in the UK by payment tool along with its five year future forecast for the
development of the market. This report offers an in-depth analysis of the
consumer attitudes towards prepaid cards, mobile payment tools, P2P tools and
the process of deployment constructed by the companies in Mexico. Learn the
latest trends which drive consumer behaviour at the macro level and plan the
respective strategies further.
Mexico - Economic
forecast
Financial
movement has been versatile to sharply bring down oil costs, powerless world
trade development and money related policies fixing in the United States.
Domestic demand remains the fundamental driver of monetary activity, upheld by
late auxiliary changes that have sliced costs to buyers, eminently on power and
telecoms services. Development will be kept down in 2017 and 2018, for the most
part through venture and buyer confidence, following uncertainties about future
US strategy, in spite of the fact that the economy could profit by more
grounded import demand from the United States.
Macroeconomic
factors are being fixed. Banco de Mexico raised policy rates to counter
inflationary weights and keep expansion expectations secured close to the
inflation target and all the more as of late because of elevated vulnerability
in the wake of the outcome of the US presidential decision. Keeping in mind the
end goal to meet the union way and guarantee debt sustainability, the 2017
budget plan incorporates expenditure cuts, with the goal of coming back to an
essential surplus.
The
government laid down a consolidation path two years back to lessen the budget
deficit by 2 percentage points of GDP more than 4 years. However, there is degree
for reallocating expenditures and further constraining tax expenditures to rise
spending on projects helpful for comprehensive development for Mexican families
– such as child care, wellbeing, poverty reduction, and infrastructure.
Financial activity held back by external factors
Even being
hit by major external shocks, the Mexican economy has been versatile. The
external environment is a task, with the global economy remaining in a
low-growth trap and poor expectations degrading trade, investment, and salaries.
Headwinds specific to Mexico incorporate reducing oil prices, which had cut
down government receipts, cutbacks in power sector investments, and the heavily
depreciating Mexican peso following market expectations of US Federal Reserve
fixing, and policy uncertainty in the United States.
The
government is on right path to meet its Public Sector Borrowing Requirements
(PSBR) deficit target. The deficit was cut down by 1.1% of GDP from 2015 to
2016; however this largely reflected a one-off profit remittance from the
central bank. The loss of budget revenue following the eradication of global
oil prices posed a threat and an opportunity for Mexico, which it conveniently
met by implementing a reform to raise taxes by 3% of GDP since 2014, thereby
majorly reducing fiscal dependence on oil.
Certain reforms are needed for the country’s economic and
financial growth
·
Misallocation of productive resources,
·
stringent local regulations,
·
weak legal institutions,
·
high rates of corruption
·
Insufficient financial inclusion
·
Eradicating extreme poverty,
·
reducing income inequality and
informality,
·
Raising female participation, and
encouraging more responsible business practices.
The outlook is linked to external developments
The
expansion of the Mexican economy is anticipated to be affected by policy
uncertainties in the United States. However, the economy will continue to be
accepted by a competitive exchange rate, solid credit expansion, and continual
improvements in the labour market included by the government’s structural
reforms and the low inflation environment.
For more coverage tap on the link below
Related Reports
Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
query@kenresearch.com
+91-124-4230204
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