The Day at a Glance | August 13 2021

The Top

*The Corporate Coordinating Council will present a proposition to incentivize investment.

*Italy received 25 billion euros as part of the first disbursement of the European Recovery Fund.

*Banxico forecasts inflation above 5% until the 2Q22.

*The US approved third dose applications of the Pfizer and Moderna vaccines to reinforce protection among people with weak immune systems.

Economic environment

The CCC (CCE for its initials in Spanish) will present the Ministry of Economy proposals for incentives to encourage investment. According to news reports, the Corporate Coordinating Council will present a package of proposals to the Ministry of Economy that could boost private investment in the country. The plan seeks to back the economy`s revival after the pandemic and reach a sustainable rate of growth above 3% starting in 2022. According to reports, the plan considers up to 30 proposals to boost investment; some that stand out call for fiscal stimuli, like the implementation of an accelerated depreciation of a company`s fixed assets method for accounting and fiscal purposes. Additionally, proposals suggest backing micro, small and medium sized companies through development banking; and simplifying paperwork. The Ministry of Economy has reiterated that it`s carrying out conversations with the private sector in order to reinforce the economy`s revival and expects to meet with the CCC in order to discuss specific measures. Ultimately, the CCC`s proposals will also have to have the Ministry of Finance`s approval as the propositions imply fiscal costs (reduced collection), which, according to the CCC, would be compensated by greater investment and employment. The announcement is not part of any of the infrastructure investment packages that have been announced in previous months, but rather, they are part of an independent effort to incentivize investment.