What’s happened? Two years into his presidency, Enrique Peña Nieto is struggling to convince voters that his reforms will boost the economy.
How will it affect investors? When Peña Nieto managed to pass a package of historic reforms it heralded a new era for Mexico’s economy. Economists always recognised that these were long-term, structural measures yet for a government that won a close election victory it was always vital that they showed short-term benefits. In the last two years Peña Nieto’s approval rating has been hit by corruption scandals and security issues, which means that he needs the reforms to show some positive effects more than ever. However, so far the results are mixed.
Economic growth has disappointed. It had been hoped that the reforms would unleash a wave of investment-led growth but that hasn’t really happened. Mexico’s GDP grew 2.1% in 2015 and is expected to grow by 2.8% this year, which, for many Mexicans, isn’t enough to justify the controversial reforms. One reason that growth has slowed is the falling oil price. It hit export revenues, which is forcing the government to retrench spending and means that state oil firm, Pemex, has less to invest. It also looks like cooling some of the interest in the landmark energy reform that policymakers had been hoping would attract large amounts of foreign direct investment.
Ford investment highlights Mexico's booming carmaking sector
April 16, 2015
Ford is poised to give Mexico’s carmaking sector a fresh boost on Friday with the announcement of $2.5bn in manufacturing investments, further burnishing the reputation of the central American nation as a rising automotive powerhouse.
Mexico's Energy Overhaul draws Geological-Data Firms
April 17, 2015
The opening of Mexico’s energy sector to private and foreign companies is drawing dozens of geological-data firms that plan to crisscross the Gulf of Mexico and onshore areas in search petroleum riches that went undiscovered during the eight-decade monopoly of Petróleos Mexicanos.
Mexico unveils new swaps rules to boost transparency
April 18, 2015
Mexico's central bank on Friday unveiled new rules aimed at limiting risk in the swaps market, despite concerns the measures could push trades into the United States where such instruments are subject to less oversight.
The chinampas, or floating market gardens, are unique, one of the few living reminders of the Aztec city of Mexico-Tenochtitlan, captured by the Spanish conquistadors in 1521. Almost 500 years later this network of waterways and man-made islands, which features on the Unesco World Heritage list, is threatened by unbridled urban development and over-exploitation of groundwater.
Radio Centro posts biggest weekly loss since 2013 on TV dropout
April 17, 2015
Grupo Radio Centro SAB, whose stations reach half of Mexico City’s residents, had its biggest weekly drop in more than two years after it failed to come up with the money needed to buy a national-television license.
Videgaray says Mexico to hedge 2016 oil exports, limit new debt
April 18, 2015
Mexico will hedge its 2016 oil exports to protect against lower prices even with crude near a six-year low, and the nation has little room to increase its debt to avoid spending cuts, Finance Minister Luis Videgaray said.
HSBC, which for years branded itself the “world’s local bankâ€, is accelerating a plan to break from that business model and retreat from key emerging markets, in a renewed effort to become “simpler and smallerâ€.
A year ago American border agents faced a freak phenomenon. Tens of thousands of Central American children, many more than usual, surged across the border from Mexico. Rather than running from la migra, they handed themselves in, hoping eventually to be set free to join family members in the United States via a loophole in the immigration law
President Enrique Peña Nieto and his top military commanders flew to a modest fishing village in Mexico’s far northwest on Thursday and made a promise to protect a small porpoise called the vaquita that is on the edge of extinction.
