In a recent statement at a banking conference in London, Onur Genc, the Chief Executive of BBVA (BBVA.MC), expressed strong confidence in Mexico’s economic prospects as the country prepares for a leadership change. With Claudia Sheinbaum set to take office as the new president on October 1, Genc emphasized that Mexico remains a key market for the Spanish bank, highlighting its favorable cost structure and competitive advantages over the United States.
Genc noted that Sheinbaum, who previously served as the head of government for Mexico City from 2018 to 2023, has a proven track record of effective governance. He remarked on her ability to articulate the necessary strategies to foster growth and stability during her upcoming presidency, a sentiment that resonates positively within the business community.
One of the main themes of Genc’s remarks was Mexico’s burgeoning role as a manufacturing powerhouse. He pointed out that the country has recently outpaced China as the top exporter to the United States, a significant milestone attributed to lower production costs and a skilled labor force. This shift underscores Mexico’s evolving position in the global supply chain, particularly in the context of “nearshoring”—a practice where companies relocate operations to neighboring countries to optimize logistics and reduce costs.
Furthermore, Genc highlighted BBVA’s impressive growth in Mexico, reporting that the bank has gained five million new customers in recent years, with a remarkable 85% of these acquisitions made through digital channels. This trend not only reflects the bank’s successful digital transformation but also signifies a growing inclination among Mexican consumers towards online banking solutions.
As the country braces for a new administration, the outlook from BBVA indicates a robust belief in Mexico’s long-term potential. This sentiment is echoed by various analysts who recognize the strategic advantages the country offers in an increasingly competitive global market.
In conclusion, as Sheinbaum prepares to take the reins, the insights from BBVA’s leadership suggest that Mexico is poised for continued growth, driven by innovation, strategic investment, and a dynamic economic landscape. The upcoming months will be crucial in shaping the future of Mexico’s economy, and all eyes will be on the new administration’s policies and initiatives as they unfold.
This report draws on information from Reuters to highlight the sentiments shared by industry leaders about Mexico’s economic trajectory in light of upcoming political changes.
