Infrastructure and energy needed to boost nearshoring: BBVA Mexico

Mexico City.- The country can still take advantage of the window of opportunity represented by capital relocation (nearshoring) , but challenges remain in terms of infrastructure and access to sufficient energy that impact productive activity, said BBVA Mexico 's CEO, Eduardo Osuna.

In an interview with EL UNIVERSAL ahead of the 88th Banking Convention, which begins next Thursday, the executive of the largest financial group operating in the country said that in addition to external uncertainty due to U.S. President Donald Trump's tariff policy, Mexico must strengthen demand, domestic consumption, and the labor market.

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"If there isn't enough energy, there's nothing we can do. If we continue to have huge infrastructure bottlenecks, it's going to be an impediment. If we're not properly training our people, it's going to be an impediment as well. All of this needs to be prepared," he stated.

"We have between 12 and 24 months for nearshoring to become a good opportunity again, and let's not just talk about nearshoring, but also about domestic demand and consumption, which we must continue to strengthen, increasing average incomes, but especially by formalizing jobs in this country."

In Osuna's opinion, credit in Mexico will slow during 2025, in line with the lower economic activity already reflected in first-quarter indicators.

“We're seeing credit growth, but at a slower pace, across virtually all products and segments. Our main guideline is that credit will grow at single digits this year, when it had been growing at double digits. In an environment like the one we're seeing, with a global and then local slowdown, single-digit credit growth is going to be good news. It means that there are sectors that continue to function, such as consumer goods, due to salary increases,” he explained.

Osuna said there are some bright spots in the country, with sectors and geographies maintaining their growth despite a complex economic environment.

"The strategy remains unchanged in the sense that we will continue investing at record levels because we are expanding the physical and technological infrastructure to meet all this demand. We serve individuals in social programs, as well as the country's largest savers, and in the world of legal entities, from small businesses to large corporations," he explained.

GOOD RELATIONSHIP

He also highlighted the Mexican banking sector's positive relationship with President Claudia Sheinbaum 's administration, a continuation of the previous administration, when no rules regarding the sector's operations were changed.

“The rules that weren't changed serve to ensure the system is solvent and liquid, but also prudent, and contributes to the country's growth. That's very good for what's coming, and I think the new administration has that understanding. There's a great dialogue on all the different aspects we have with the government,” he said.

Regarding the designation of cartels operating in Mexico as terrorist groups, Osuna said that greater understanding is expected in the work to prevent money laundering with U.S. authorities , so it is possible that there will be strengthened controls by the financial sector to prevent these crimes.

“The great challenge of designating drug cartels is to have greater clarity and understanding of some things that remain to be defined in terms of what the US regulator expects. I think there's always room for improvement and, above all, to say, 'Hey, we're here to continue improving, to continue interacting.' In Mexico, due to the situation and conditions in our country, we've been very strict in this process,” he explained.

"So, it will be evolutionary, and I think it will ultimately force us to be even more assertive," Osuna emphasized.