July 22, 2014
07/21/14 Reuters UK
Mexico’s economy likely picked up speed in the second quarter, helped by signs of improving domestic consumption, and growth could be stronger in the second half of the year, a Central Bank deputy governor said on Monday.
Manuel Sanchez, one of five governors on the Bank of Mexico’s board, told Reuters in an interview that the economy appeared to have grown slightly more than expected in the second quarter.
June 26, 2014
06/25/14 The Wall Street Journal
After many months of dreary economic news from Mexico, upbeat April data buoyed hopes that the economy is finally on the path toward improved growth.
The government of President Enrique Peña Nieto and some economists welcomed the broad 1.3% expansion in the global index of economic activity in April, which marked the best monthly performance since November 2012, bolstered by growth in services, construction and industry.
June 3, 2014
Abundant cheap labor has helped Mexico lure billions of dollars in foreign investment in recent years and spur a manufacturing sector so dynamic it has been likened to China.
But the same low wages that help make manufacturers competitive are a long-term drag on the economy. Millions of people working off the books for paltry sums holds back private consumption, crucial for sustained growth.
The government has slashed its growth forecast for 2014 after the economy expanded by just 0.3 percent in the first quarter, well short of expectations.
March 21, 2014
The Wall Street Journal, 03/21/14
Mexican home builder Corporación Geo SAB said Thursday it has filed for bankruptcy protection in Mexico with a prearranged restructuring plan it hopes will get the struggling company building again. In a statement, Geo said several bank creditors and bondholders signed off on the plan.
January 24, 2014
Mexico’s Finance Minister Luis Videgaray said there is no need to support the peso, which has fallen to its weakest in 18 months, because the market remains sufficiently liquid.
“The Mexican peso market is, fortunately, highly liquid and at the moment doesn’t require any support,” Videgaray said in an interview at the World Economic Forum in Davos, Switzerland. “We have a very liquid market and we don’t see the need to inject liquidity, to intervene.”
January 17, 2014
In Latin America, this looks to be the year of Brazil — thanks to the impending World Cup and presidential elections. But with another lackluster year looming in emerging markets, fans of transformation, growth and investment potential should instead look to Mexico.
Brazil’s president, Dilma Rousseff, is expected to win a second term this year, and its soccer team stands a good shot at victory. But growth has slowed considerably. In the world’s seventh largest economy, reforms are stagnating and the country faces a possible ratings downgrade.
Mexico, by contrast, is in the throes of serious reforms. It will likely lead Latin America with at least 4 percent growth this year and an improving investment outlook. Standard & Poor’s recently boosted Mexico’s credit ratings because of energy reforms that the rating company trumpeted last month as a “watershed moment” for the country. It is becoming a story of inverted fortunes, as Michael Shifter and Cameron Combs of the Inter-American Dialogue recently wrote.
January 10, 2014
Mexico Institute Director Duncan Wood and Associate Christopher Wilson responded to the U.S. Department of Commerce Federal Register Notice published on November 25, 2013, which requested stakeholder input on the U.S.‐Mexico High Level Economic Dialogue (HLED)
In their comments, they noted that Mexico and the United States share an economic space and an economic future, and that the HLED is an important and potentially fruitful element in moving that future forward and maximizing the benefits for both countries. They stated that it should be both consolidated through high‐level engagement and institutionalization, and broadened to include a greater dialogue with the private sector and civil society and an expanded focus on border affairs.
Read their testimony here.
December 9, 2013
Mexican inflation picked up less than expected in November on a spike in fresh food and electricity costs and muted underlying price pressures boded for steady borrowing costs through next year.
Inflation in the 12 months through November rose to 3.62 percent, the national statistics agency said on Monday.
December 6, 2013
Three years into her home-ownership dream, Martha Orozco has had enough. Stuck in a government-sponsored complex called Parque San Mateo that’s two hours away from her $8,000-a-year job as a hospital secretary in Mexico City, Orozco sees only broken promises and blight all around her.
The program has been a disaster. Hundreds of thousands of homes are now derelict after buyers such as Orozco concluded they were located too far from city centers and moved out. Developers, their profits assured by government guarantees, built houses faster than municipalities could connect them to water systems and power grids.
December 4, 2013
Global oil majors from Exxon Mobil Corp. to Chevron Corp. are about to get the clearest indication yet of how far Mexican lawmakers will go to lure them into the largest unexplored crude area after the Artic Circle.
Senate committees will begin debating a bill to end a seven-decade state oil monopoly as soon as today. On the agenda is a proposal by members of President Enrique Pena Nieto’s Institutional Revolutionary Party, or PRI, and the National Action Party, or PAN, to extend a profit-sharing model unveiled in August by also allowing production sharing or a license model used in Brazil, said two people with knowledge of the talks.