The BBVA bank ruled out the possibility that the US economy enters recession, which will allow Mexico to close the year with a growth rate close to 3% thanks to the exports and the positive evolution of its domestic economy.
“There is no recession in the United States, which supports Mexican exports, and with the favorable evolution of the domestic economy, we forecast that the economy will be closer to 3% by the end of 2023, so the chance of a recession in the United States was regarded as relatively significant,” according to Eduardo Osuna, general director and vice president of the Spanish bank in Mexico.
“In the last 60 years, whenever interest rates have risen at the rates we have witnessed, there has been a recession. The spike has been the steepest in the last 50 years, yet the US economy remains solid,” Osuna said.
The National Securities Market Commission (CNMV) of Spain announced on Thursday that the bank obtained a net attributable profit of 4,277 million dollars at Friday’s exchange rate in the first half of 2023, 31.1% more than a year earlier, thanks to higher revenues obtained, especially in Spain and Mexico.
The subsidiary in Mexico continued to lead in terms of contribution to global accounts, with 2,614 million euros and a year-on-year increase of 30.1%, representing 53% of the bank’s profits.
This increase is the main component of private consumption and is driving GDP growth. Raising the minimum wage, full employment in many areas, and insertion into the regular market
Regarding investment, BBVA Mexico noted that its good performance has already reached levels prior to the coronavirus pandemic, with public investment growing by 12.3% and private investment by 8.7%.
