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Mexico's public policy should not scare off potential investors: think tank

Source: Xinhua| 2018-11-12 12:11:24|Editor: Liangyu
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MEXICO CITY, Nov. 11 (Xinhua) -- Mexico's future public policy should not undermine the confidence of potential investors, a private-sector think tank said on Sunday.

The Private Sector Center for Economic Studies (CEESP) urged the incoming administration of president-elect Andres Manuel Lopez Obrador to take a more cautious approach to introducing reforms that might scare off investors.

The center, which belongs to the Business Coordinating Council, Mexico's largest business confederation, said in its weekly report that "it's no use if good intentions (in public policy) are not reflected in reducing poverty and creating more well-paid jobs."

"That's why it's important for the new government to carefully review the public policies it aims to implement... along with a complete analysis of its viability and impact on economic growth and the wellbeing of families," it added.

The markets reacted nervously on Thursday after Lopez Obrador's party submitted a bill to Congress to lower commissions charged by banks, which are among the highest in the world.

Mexico's Stock Exchange plunged nearly 6 percent and the peso lost over one percent of its value.

In a bid to calm the markets a day later, Lopez Obrador pledged not to introduce any economic, financial or fiscal reform in the first half of his six-year presidential term.

According to the CEESP, the markets were already ruffled by Lopez Obrador's decision last month to cancel the construction of a costly and controversial airport project that is 20 to 30 percent completed.

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