IMF urges Mexico to undertake further tax reform

Reuters, 11/26/2013

imfMexico’s recent tax overhaul does not do enough to curb the government’s dependence on oil revenue while other major reforms may not boost economic growth as much as authorities forecast, the International Monetary Fund said on Tuesday.

“With the prospect of declining oil production over the next decade, the federal government needs to beef up its collection on non-oil revenues,” the IMF said in a report on the fiscal reform that accompanied its so-called Article IV consultation with Mexican authorities.

Read more…

Mexico’s economic potential, slowdown “exaggerated” – IMF official

pesos5Reuters, 10/31/2013

While Mexico’s economy was overly hyped in the early months of this year, so too are reports of the slowing of Latin America’s No. 2 economy, a senior International Monetary Fund (IMF) official told a local newspaper on Thursday.

“(Mexico’s potential) was clearly exaggerated in January, February and March, but on the other hand, perhaps now, so is (the deceleration),” Alejandro Werner, director of the IMF’s western hemisphere department, said in an interview with daily Reforma, referring to glowing reports of Mexico’s economic scope in the English language press.

Read more…

IMF cuts Mexico’s growth outlook, sees modest boost from reforms

imfReuters, 10/08/2013

The International Monetary Fund slashed its 2013 growth outlook for Mexico on Tuesday after a weaker-than-expected first part of the year, while it dialed back expectations for growth in Brazil next year.

The IMF said Mexico’s gross domestic product (GDP) would grow 1.2 percent this year, down from a 2.9 percent expansion it forecast in July, due to low government spending, a drop in construction and slack U.S. demand for local exports.

Read more…

IMF Names Mexico’s Werner Head of Western Hemisphere Office

Bloomberg Business week,11/6/2012

The International Monetary Fund chose former Mexican Deputy Finance Minister Alejandro Werner to head its Western Hemisphere department overseeing Latin America.

Werner will take up his post in early January, according to a statement released via e-mail by the IMF today. Currently head of corporate and investment banking at Mexico City-based BBVA Bancomer SA, Werner helped steer Latin America’s second-biggest economy through its deepest recession in almost two decades in 2009 without fueling a surge in the fiscal deficit.

Read more…

Give Mexico A Chance

Foreign Policy, Robert Looney, 7/16/12

Just when everyone seemed ready to throw in the towel, the economy is showing signs of fulfilling its potential. Mexico grew by 4.0 percent in 2011, and the IMF is forecasting gains of 3.6 percent for 2012 — hardly stellar for an emerging-market economy, but better than Brazil, with corresponding rates of 2.7 percent and 3.0 percent. What’s more, Mexico has managed to grow in spite of the surge of drug-related violence in key industrial zones…

It’s tempting to attribute Brazil’s economic successes and Mexico’s lackluster performance to their respective approaches to economic policy. Mexico has worked doggedly to implement the neo-liberal Washington Consensus approach to macroeconomic management — budget discipline, central bank independence, anti-inflationary monetary policy, and pro-market liberalization, including the development of a truly private banking system. In contrast, Brazil has mixed market neo-liberalism with an eclectic, proactive approach to economic policy; its “heterodox” features include a large, partially state-owned banking system with complex, discriminatory rules for credit allocation, and reliance on a witch’s brew of state-led investment strategies aimed at eliminating infrastructure bottlenecks…

While it is fashionable in some quarters to attribute Brazil’s higher growth rates to the country’s pragmatic approach to economic management and Mexico’s adherence to the neo-liberal gospel, I believe Mexico’s economic performance is largely a product of the demand for Mexican products by the U.S. The numbers certainly support this view: The IMF found a high correlation between Mexican exports and GDP, with changes in exports statistically accounting for 86 percent of the variations in the country’s growth rate between 1996 and 2010.

Read More…

Bank of Mexico helps boost IMF emergency funds

Fox News Latino/EFE, 6/21/2012

The Bank of Mexico said it offered a $10 billion bilateral loan to the International Monetary Fund as part of the international effort to bolster the multilateral financial institution’s reserves.

A total of 37 IMF members are contributing to the effort to help stabilize the global economy and promote growth, the Bank of Mexico said.

Mexico to push for more IMF funding at G20 summit

Bloomberg Business Week, 6/12/2012

President Calderon

Mexico will use the impending G-20 summit to push the world’s largest economies to increase the resources of the International Monetary Fund and build confidence in the fund’s ability to help European countries shaken by financial crisis, President Felipe Calderon said Tuesday.

“Mexico is seeking the adoption of a plan of integrated, comprehensive, long-term action that will go include, and go beyond, measures to confront and resolve the European crisis,” Calderon said.

Read more…