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00:00Perfect voice Vanessa to be first addressing the inflationary pressure we feel everywhere but also for Germany and Latin America. Is it something the consumer can weather here. Yes of course definitely. It's one of the most important trends in the world one that is certainly putting a lot of challenge some pressure to economic authorities force the finance ministry but the central banks across Latin America. And one thing that we have been struggling is basically battling a lack of inclusion and battling unemployment that were a result of Covid and battling poverty. And now you have this new trend that is also working against all the advances in terms of of growth economic growth inclusion and the combat of poverty in the region. So I think that's what inflation is all about. There has been much optimism here about what this moment for Latin America could be but many have said the key cloud on the horizon is political instability in many of the countries and particularly a movement towards populism and whether or not that might in any way detract from investment. Do you think that's the case. I think that it will happen whatever each country these sites and of course at this juncture junctures whether you take you know the opportunities that are in front of you or you also let them slip away. So I think in many of our countries what is happening is exactly that. No there's a backlash in terms of institution building in terms of democracy frustration around democracy. But it's also of course part of what is happening in the world which is something that we discussed in the in the event these days. But definitely it will depend largely on the societies on the government and the way they decide to take this disjuncture forward. But definitely we're struggling with with a new populist wave in Latin America. That is as I was saying canceling the institutional building that we have done in the last three or four decades. Also the economic advancement and some advances also in access to basic services like education health and housing services to housing. So so yes it's definitely a challenge that is in the horizon. Are you optimistic about it. Do you have to be more idiosyncratic. You can't just say Latin America in and of itself as individual countries that are going to take certain steps that make either their economies thrive or be hindered. Definitely. And I think populism as I was saying is a part of the global context. But Latin America has its own features. Know what's happening in Mexico what's happening in Brazil what's happening in the Pacific Alliance the Pacific Alliance Mexico Colombia Chile and Peru just some years ago were the countries that were making these democratic advancements and all of these institution building opened to to trade and to international flows of investment. And now there's a backlash in relation to that. In the case of Mexico it was one of the outliers in terms of fiscal support across the region. During Covid you have Brazil in the one hundred nine percent Mexico with zero point seven percent. And the policy choices that each country is making will largely decide what is going to happen in the you know in the context of of economic challenges and geopolitical challenges. What about international trade. The re route that you are someone who helped negotiate the USMC a crucial trade deal in from Mexico the U.S. and Canada. Does that get unwound. Did do you think are we at a deep globalization point or a point where we can read we assert thesis of commitments to each other. I think Mexico being one of the most open economies in the world having access to more than 50 countries in terms of free trade and free trade agreement and having the most important core of our development strategy which is the trade with it with the US. We need to take advantage of not only this vicinity with the US and the USMC in itself but also of all the geopolitical trends that are happening near Shery Ahn for instance. But that again goes to my point in terms of each country and the policy choices that we make are going to make us more competitive and being able to take advantages of these opportunities or exactly the other way around.

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Fmr. Mexican Deputy Finance Minister on LATAM Economies

Former Mexican Deputy Finance Minister Vanessa Rubio Marquezon discusses the impact of inflation, economic challenges and trade. She speaks with Caroline Hyde at the Bloomberg New Economy Gateway: Latin America. (Source: Bloomberg)

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