Mexico Passed Budget ‘Test,’ World Bank Official Says

Bloomberg, 11/4/09
Nov. 4 (Bloomberg) — Mexico passed a “big test” of political maturity by raising taxes to tame its widening deficit during a recession, the World Bank’s chief economist for Latin America said. Whether it’s enough to satisfy ratings companies, which have threatened a downgrade, remains to be seen, he said.
The watered-down version of [...]

Mexico Senate Asks Supreme Court to Rule on Banamex Bank Case

Bloomberg, 11/4/09
Nov. 4 (Bloomberg) — Mexico’s Senate asked the Supreme Court to rule on whether the Finance Ministry has authority on its own to permit foreign banks such as Banamex, a unit of Citigroup Inc., to operate in the country.
The request for an opinion addresses the ministry’s decision on March 19 that Banamex, Mexico’s [...]

At 4.9%, Mexico’s Rate of Inflation is Rising in the OECD (in Spanish)

El Economista, 11/4/09
In September, Mexico was one of four countries with the highest annualized rate of inflation amongst the 30 OECD countries, according to that organization.
The OECD said that annualized consumer prices in the OECD fell 0.3% in September 2009, the same rate as in August, while in a monthly comparison, inflation was 0.2%, similar [...]

On Día de Muertos, Crisis and Unemployment Kill Commerce (in Spanish)

/a>El Universal, 11/2/09
The economic crisis and unemployment buried the hopes that consumer spending would revive during Dia de Muertos celebrations.
The forecasts of small businesses foresee a small 4% increase in sales compared to the same period in 2008, but the figure could be less, in terms of unemployment, as new, informal competitors joined the Día [...]

Mexico Has ‘Long Way to Go’ on Budget, Oil Reforms, Garza Says

Bloomberg, 11/2/09
Mexico has a “long way to go” in its effort to strengthen the economy by reining in its budget deficit and boosting investment in the oil industry, said Tony Garza, former U.S. ambassador to Mexico.
The tax increases that President Felipe Calderon pushed through congress yesterday form part of a reform plan aimed at [...]

Mexico Senate Completes Approval of Tax Plan

Bloomberg, 10/31/09
MEXICO CITY, Oct 31 (Reuters) – Mexico’s Senate approved on Saturday a watered-down version of President Felipe Calderon’s fiscal reform package to raise taxes to reduce Mexico’s dependence on its waning oil industry.
Senators in the early morning hours on Saturday agreed to minor modifications to a bill passed by the lower house last week [...]

Pemex Will Maintain Contracts Despite Constitutional Controversies (in Spanish)

El Economista, 10/30/09
Despite the constitutional controversy of Pemex’s new legal framework, approved by the Senate for some types of contracts that the state-owned company made beginning with the 2008 petroleum reform, the company will continue the signing of contracts with other companies.
Pemex director, Juan José Suárez Coppel, explained that the controversy refers to very specific [...]

Mexico Proposes Limiting Corporate Tax Deferments

Boston Globe, 10/30/09
MEXICO CITY—Mexico pressed businesses to pay more taxes on Thursday, with the administration of President Felipe Calderon forwarding a proposal to limit corporate tax deferments to a maximum of five years.
Calderon angrily lashed out at large corporations that he says pay only an average of 1.7 percent of revenue in taxes.
Calderon called that [...]

Reeling Mexico Hopes Travel Deals Bring Back the Tourists

USA Today, 10/30/09
During a visit to San Diego in April, Pratik and Priti Chavda thought they’d slip over the border into Tijuana just to do a little shopping, have a quick meal and say they had made it to Mexico. But upon hearing the plan, staffers at their hotel sounded the alarm.
“Swine flu! Drug cartels! [...]

Mexico’s Factories Rehire but Recovery Still Weak

Reuters, 10/29/09
Mexican factories on the U.S. border are rehiring following sweeping layoffs as the country pulls out of its worst recession since the 1930s, but plant managers say a strong rebound is still far off.
Mexico’s assembly-for-export factories, or maquiladoras, sell everything from computers to aircraft parts, but U.S. demand has plummeted since January and factories [...]