They released what some analysts had predicted; production fell for the second consecutive quarter and expectations for 2022 are less optimistic than they were at the end of last year. How much does it impact personal finances?
The initial perspective was an advance in the GDP of 4 percent and they are placing it slightly above 2 percent. If it was already impossible to recover the levels prior to the 2019 pandemic, now even less so. Even a recession is looming, which in the worst case could imply a setback compared to 2021. The above, despite the president’s optimism.
Although they seem far from our pockets, the figures are quite close. For those who have a company, it can mean a drop in their demand; young people will have a harder time finding a job; labor mobility is difficult; and toughens wage negotiations, among other things.
At the moment it is not a deep recession, in which all sectors fall, since globalization allows certain areas to continue with dynamism. Therefore, it is necessary to fine-tune decisions regarding personal finances. It is advisable to assess the area in which you work and be aware of how it could be affected and, if possible, change to one with a better future.
In the field of investments, let us remember that the stock market is not the economy and there will continue to be opportunities, above all, because the basket of instruments is international and there is a great variety, both to take risk positions, and to hedge if it is conservative.
If the scenario gets complicated, we could experience a period of “stagflation”; that is, inflation with productive stagnation, which places family finances in serious trouble, since there would be lower income with higher expenses and worse for those who are in excess of debt, as it is accompanied by the rise in interest rates.
It’s time to review and correct money management; not take it lightly to ensure that this stage passes without serious impact.
Although it leads us to prudence, let us avoid paralysis; In Mexico, internal crises, adjustments and external shocks are always present. Decisions such as changing jobs, getting married, buying a home, investing, establishing a business, should be considered, but under the magnifying glass of current margins of action. Therefore, it is important to know our reality and perspective.
I comment on these types of decisions in the recent episode of the Money and Happiness Podcast, I invite you to listen to it on platforms such as Spotify and Apple podcast, among others.
Do you feel affected by the lower economic activity? Comment me on Instagram: @atovar.castro