Last week, I spent time in Mexico City with a delegation of government officials and business leaders that Afina International help put together for the Global Interdependence Center and the President of the Chicago Fed.
We met with Banxico, the BMV, government officials to discuss timely issues: monetary policies, economic activity, trade, Covid19.
Two key takeaways (breakdowns below) from those high-level meetings struck me:
1. Global Supply Chain Management will be a more widely discussed topic very soon.
HUGE opportunity for Mexico, given its location, to become a powerhouse in the supply chain, especially for trade with US & EU.
Companies MUST rethink their supply chain strategy or risk exposing themselves again to threats like Covid19.
Mexico should seek opportunity and open up the country for investment.
2. Uncertainty is always a strong impediment to progress.
Global economies were starting to rebound EOY, but with Covid19, all bets are off.
No one knows the impact on global trade – from global recession to a 0.5% decrease in world GDP? Temporary situation – a treatment and/or warmer weather conditions will end this “pandemic.”
Global growth will resume – next Q or next Y, no one knows, hence volatility in the markets.