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Environment

The economic environment remains positive, for macreconomic stability and foreign investment participation mean a more meaningful player for markets than domestic investors, given their influence on the exchange rate and capital flows. The former want as little change as possible in the mix of economic policy, despite low economic growth. The latter complain about poor momentum in activity, delayed disbursements of budgeted resources, or insufficient clarity in government policy and priorities. The AMLO government has remained close to the domestic business leaders and discusses with them some joint investment projects or new consessions and contracts. As the government has an agenda of regional development and public and private investment in potentially large projects in the southeast, large business conglomerates try to stay in close contact and participate in such projects. Small and medium sized industry, in contrast, is feeling the effects of very low level of demand, slow disbursement of government spending, log periods for collection and credit tightening by banks. It is possible that a second year of very weak growth would result in job losses in this segment of the economy during 2020.