Mexico Weekly - The many faces of economic growth in Mexico If you like these events and would like to find more about the MexCC and participate in them please click here and become a member!
The Economic Commission for Latin America recently slashed its forecast for growth in the Mexican economy in 2015 from 3 per cent to 2.4 per cent, in line with similar moves by institutions such as Mexico’s Central Bank and the Ministry of Finance. Indeed, during the past three years, overall growth has been underwhelming, however according to the most recent results of the indicator for state level economic activity produced by Mexico´s National Institute of Statistics and Geography, the issue of growth in the country is far more complex then suggested by its recent lacklustre performance. Said indicator is roughly equivalent to the traditional measure of growth in GDP.
Firstly, there is a great degree of variation in the data. Whereas the central state of Queretaro grew by more than 12 per cent during the first quarter of 2015 compared to the same period the year prior, the southern state of Campeche, which heavily relies on oil production was hard hit by the recent fall in oil prices as shown by the fact that its economy actually decreased close to 7 per cent during year on year. In fact the other two states with a large exposure to oil prices, Tabasco and Veracruz also had a bad start to the year, given that the former’s economy decreased by 0.7 per cent and the latter grew by a paltry 0.8 per cent.
Nonetheless, for those bullish on Mexico as an investment opportunity, they should keep an eye on the nine out of 32 states (it should be noted that technically speaking the Federal District is not a state) grew by more than 5 per cent. Moreover, six of these states (Queretaro, Guanajuato, Nayarit, Tlaxcala, Chihuahua and Nuevo León) grew by more than 6 per cent.
Mexico, a middle-income but highly unequal country, is betting on sweeping structural reforms to catapult it into the big league of advanced economies.
Painted by the collective, German Crew, over 209 houses on a hill in the depressed neighbourhood of Palmitas in Pachuca, Mexico, the work was designed to reduce violence among young people.
BBVA profit up as Mexico, Spanish Businesses perform strongly
July 30, 2015
Spain’s Banco Bilbao Vizcaya Argentaria SA (BBVA) said Friday its profit rose 74% in the second quarter on higher revenue and a stronger performance from its Mexican and Spanish operations.
Meet Carlos Slim Helú, the wealthiest man in Mexico
August 2nd, 2015
With a net worth of at least $35.4 billion, Slim's influence is far-reaching in Mexico and abroad.
Slim says that his biggest goal is poverty alleviation, which he sees as the responsibility of private businessmen like himself.
Mexico steps up intervention as peso declines to record
July 30, 2015
Mexico said it would quadruple daily dollar sales to $200 million in an effort to prop up the peso, helping to reverse a slide that left the currency at a record low.
Pacific Trade officials fail to agree on final TTP deal
August 1st, 2015
Trade ministers from the 12 nations negotiating the Trans-Pacific Partnership (TPP), which would stretch from Japan to Chile and cover 40 percent of the world economy, fell just short of a deal on Friday at talks on the Hawaiian island of Maui.
Weird world: the cute little 'Peter Pan' axolotl that never grows up
August 1st, 2015
The axolotl, or Mexican salamander, is a very strange creature living up to 15 years yet never maturing to an adult. The species is found exclusively in the lake complex of Xochimilco near Mexico City and its name is thought to have originated from the Aztecs as early as the 14thcentury.