Mexico to slash spending by $5.8bn

9/9/2015 Financial Times

energy- oil pumps 2Mexico plans to cut spending by another $5.8bn in 2016, finance minister Luis Videgaray said on Tuesday, after its economy was buffeted by tough global economic conditions and especially the drop in oil prices.

A 2016 budget package, which he submitted to Congress, reduces spending by 1.15 per cent of gross domestic product compared with the 2015 package — a total of 221bn pesos ($13bn). Mr Videgaray said that more than half of the budgetary belt-tightening had already happened — amid falling oil prices, Mexico’s main budgetary problem, the government announced a pre-emptive 124bn peso austerity drive in January.

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Investor Insight: How Strong Is Mexico’s Economy?

9/8/2015 Forbes

mexican pesosOn September 2, Mexico’s President Enrique Peña Nieto gave his annual state of the union address at the regal Palacio Nacional in Mexico City’s historic center. The speech tacitly acknowledged Mexico’s government’s struggles to improve public security and kick-start meaningful economic growth. Peña Nieto, after all, had seen his approval rating plummet to 35% this past year as scandal after scandal, including the abduction of 43 student teachers, the cancelation of a major public works contract, and the escape of cartel boss Joaquin “El Chapo” Guzman tarnished the country’s image. “Our country was deeply hurt by a series of cases and terrible events…[that] have damaged the mood of Mexicans as well as their confidence in government institutions,” Peña Nieto explained in his speech.

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Mexico’s Economy: President Peña Nieto Promised Sweeping Reforms, But Corruption Accusations Have Stalled Growth

9/2/15 International Business Times

Mexico's President Enrique Pena Nieto and first lady Angelica Rivera salute during the military parade celebrating Independence Day at the Zocalo square in downtown Mexico CityMexican President Enrique Peña Nieto marked the halfway point of his six-year presidential term Wednesday with his third State of the Union address, an opportunity he used to highlight his signature plan to dramatically boost Mexico’s economy. But many Mexicans say Peña Nieto’s reforms have fallen short of expectations, hampered by corruption and global economic uncertainties.

Peña Nieto has pushed through roughly a dozen bold reform packages for the energy, telecommunications, finance and education sectors — among others — since he assumed the presidency in late 2012. Mexican officials originally estimated the changes could net 4 to 5 percent annual growth for the country. But three years later, growth figures remain modest: The economy expanded by 2.1 percent in 2014 and is projected to grow around 2.3 percent in 2015, according to the Bank of Mexico’s surveys of private economists in August.

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Texas Gov. Abbott to Visit Mexico to Mend Fences, Talk Trade Amid Strained Ties

8/25/2015 The Dallas Morning News

Greg_Abbott_by_Gage_SkidmoreGov. Greg Abbott is expected to visit Mexico City on Labor Day weekend, his first trip abroad as governor, and will lead a delegation of Texans eager to move forward amid turbulent times between once-solid neighbors, The Dallas Morning News has learned.

The agenda is still being fleshed out for the first trip to Mexico by a Texas governor since 2007, but people familiar with the matter say the visit is aimed at mending fences and underscoring the economic, cultural and political integration between Texas and its southern neighbor, an important trading partner.

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Mexican Economy Posts Moderate Advance

8/20/15 The Wall Street Journal

1363368470_a0fdfdf230_zMexico’s economy advanced at a moderate pace in the second quarter as gains in services compensated for a sluggish industrial sector that was held back by a decline in oil and gas production.

Gross domestic product expanded 2.2% from the second quarter of 2014, and was up 0.5% seasonally adjusted from the first quarter, the National Statistics Institute reported Thursday. The increase from the first quarter translates into an annualized rate of 2%, up from an annualized 1.7% increase in the first quarter.

The expansion from a year before was in line with the 2.2% median estimate of 12 economists polled by The Wall Street Journal, but marked a slowdown from the first quarter, when output of goods and services rose 2.6% from a year before.

Services in the April-June period rose 3.1% from a year before, and industrial production rose 0.5% as a drop in oil and gas production partially offset a 3% rise in manufacturing output.

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Nissan In Mexico: Japanese Automaker Exports 5 Millionth Car From Its Mexican Manufacturing Base

8/18/2015 International Business Times

To give you a sense of just how fast Mexico is becoming a major automotive manufacturing hub, consider this: For its first three decades of sending its Mexican-made cars abroad, Nissan exported roughly 33,000 cars and trucks every year. But since 2002, that number has topped 307,000 units annually, a nearly tenfold average annual increase.

On Monday, Nissan announced that a red NP300 pickup truck became its 5 millionth Mexican-made export since the Japanese automaker began sending its vehicles from Mexico to the United States in 1972. That’s up from 4 million in 2013, which means the export pace has accelerated to about a half-million cars annually in the past two years.

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Mexico and Colombia join ‘fragile five’ emerging markets

8/13/2015 Financial Times

120px-Philippine-stock-market-boardColombia and Mexico are now members of the “fragile five” group of emerging market nations, replacing India and Brazil, according to analysis by JPMorgan Asset Management.

The Latin American duo, alongside Turkey, South Africa and Indonesia, are seen as the countries most overdependent on potentially skittish foreign investment flows.

The original “fragile five” were worst hit during the taper tantrum of 2013, when foreign investors fled emerging markets. The vulnerability of four of the five (South Africa, Turkey, India and Indonesia, but not Brazil) had been identified by JPMAM before the sell off.

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