Mexico lacks investment to create jobs, says think tank

2019-04-29 09:28

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MEXICO CITY, April 28 (Xinhua) -- Mexico lacks investment needed to speed up economic growth and job creation, the Private Sector Center for Economic Studies (CEESP) said on Sunday.

In its weekly report, the research center of Mexico's Business Coordinating Council said the low investment rate hampers businesses' ability to expand and generate employment.

"It's clear that the main driver of growth is not working as it should, since investment levels in Mexico have not been enough to reach an economic growth rate of more than 2.4 percent on average in the past 25 years," the CEESP said.

The quality of jobs created is also "important," the think tank said.

According to the Mexican Social Security Institute (IMSS), in the past 12 months up to March, over 561,000 new jobs were registered, down by 29.2 percent from a year ago.

The decrease either points to a slowdown in economic activity or to "the depletion" of formal jobs, IMSS warned.

"The main engine of growth is investment, and as capital stock increases, it can generate more productive activities capable of creating more quality jobs and improving the well-being of the population," said the CEESP.

Mexico's economy grew 2 percent in 2018, and the Mexican government has set a target of 4 percent growth for 2019, mainly through infrastructure construction. Enditem

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