The reality that surrounds the current war between Russia and Ukraine, together with the new outbreaks of contagion that are being registered in China, continue to impact the main world economies and, specifically, in Latin America, through slower growth in the midst of a significant increase in inflation.

In the Mexican case, on May 12, the Governing Board of the Bank of Mexico (Banxico) decided to increase the target for the overnight Interbank Interest Rate by 50 basis points to a level of 7.0%, thus recognizing greater pressures for inflation. overall and underlying.

Consequences such as the high price of fuels, the strong increase in food such as wheat and corn, and the new interferences in supply chains have generated multiple effects on prices.

These effects range from the everyday, with the increase of more than 20% per year in one of the main foods in the Mexican diet, such as tortillas, to significant increases in energy prices and transportation costs that point directly to the performance of the industry in Mexico.

All these factors as a whole influence the downward bias, cutting the growth projection for 2022 to 3%, according to Banxico.

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For its part, in the recent event of the 85th Convention of Banks in Mexico, Mexican banks agree that the main action to counteract this adjustment is to activate the granting of credits to all productive sectors.

The real estate sector has not been immune to the economic repercussions of the conflict, which can be measured directly in a slowdown in demand, which tangentially affects the industrial sector.

Another worrying factor is the new obstacles that will be reflected throughout 2022 in the supply chains where industries such as the automotive, electronics and telephone industries experience significant increases in the cost of raw materials, as well as the general construction that has already reflected the end of 2021 significant increases in its main inputs such as steel and cement.

Issues such as transportation and investments in infrastructure, which are the pivot of international trade flows, will also be evaluated based on the immediate return on investment they can generate in a scenario where liquidity is enhanced, which will probably slow down this type of investments.

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Regarding manufacturing, the Mexican case has managed to take advantage of situations that could be a risk and, on the contrary, are strengths that allow it to compete with other countries within the same continent.

The savings in labor costs and taxes, allows increasing the regional content due to the advantages of treaties such as the T-MEC, specifically in the case of Asian investments that often for geopolitical and market share reasons conflict with options. like the United States.

If we analyze carefully, domestic market issues such as investment security become more important for foreign and national investors.

Reversing the stagnation of the recovery requires a coordinated effort between authorities and investors and developers, in troubled times where some markets in particular can take advantage of particular conditions inherent to them.

This is the case of the industrial markets of the northern border of the country that attract manufacturing investment and those of the main Mexican cities that have been able to detonate through logistics.