Mexico Archives - Economy Watch

World Bank Will Help Mexicans Achieve Greater Financial Inclusion

In Mexico, less than half the population has a bank account (just 44%). In fact, 2.6% of the billion individuals around the world without bank accounts live in Mexico. Much of the population lacks any meaningful inclusion in the larger economy and is left out of the regulated financial system.

The World Bank fears this may be a huge drag on economic development for this Latin American nation, thus it has urged Mexico to reach for greater economic inclusion for its population.

Trump/Brexit Potential Prompt Mexico to Extend Line of Credit with IMF

Mexico surprised many analysts last week when it opted to increase financing it already had with the International Monetary Fund (IMF), increasing its loans by one third to $88 billion, and extending its term by another two years. The move suggests to many analysts that Mexico is feeling jittery about the prospects of a Trump administration in the United States’ White House and the possible implications of Britain’s possible exit from the European Union.

Clean Air in Mexico City? Don’t Hold Your Breath

On March 15 this year, Mexico City encountered its worst environmental crisis of the last decade. A gray fog, comprising noxious air pollutants, cast a shadow over the sprawling metropolitan area for two days. Vehicles were ordered off the roads, and people were asked to remain indoors.

Mexican Manufacturing Output Declines

Mexico’s industrial sector slid 0.1 percent in October, which fell below analyst expectations of 0.25 percent, and mining dropped 0.6 percent that same month, according to Reuters. Slow oil production and low oil prices slammed Mexico, hurting President Pena Nieto’s desire to ramp up energy production to improve the economy. Factory production grew 0.1 percent, with the utility sector expanding 0.6 percent, but construction yielded no growth.

Not Business as Usual in Mexico, as World Bank Reports Improvements

The World Bank recently issued its 2016 World Bank Doing Business report. Among its findings, Mexico was pleased to discover it has improved its ranking in the world for best place to do business up four spots to number 38, and up a whopping 11 spots to 92 for the best tax environment.

Mexico’s Central Bank Keeps Interest Rates at Record Low for Now

Central bank authorities decided to keep rates at a record 3.0 percent in the wake of Mexico’s sluggish growth, according to Bloomberg Business. In an effort to mitigate the economic fallout, the bank has taken measures to boost the peso, which has tumbled in reaction to the possibility of the U.S. Federal Reserve raising interest rates.

Moderate Growth in Third Quarter for Mexico’s Economy

Recent statistics suggest that the economic recovery in Mexico continued at a moderate pace throughout the third quarter. Industry, agriculture and service, all contributed. In the July to September period, the gross domestic product or GDP increased about 2.2%.

This is a significant boost in comparison with the third quarter of 2013, and 0.5% higher than second quarter numbers in seasonally adjusted terms, according to the National Institute for Statistics.

Mexico’s Energy Reform: A Double-Barreled Problem?

On August 12^th, Mexico’s President Enrique Pena Nieto unveiled a plan to change the nation’s constitution in order to allow private investment into its oil industry for the first time in over 50 years. Peña’s proposals are undoubtedly a step in the right direction, but it is unlikely to please either the Mexican nationalists (who advocate government control over oil) or potential foreign investors (who will demand more concessions).

Mexico Opens Oil Sector To Private Investment, Ending 75-Year State Monopoly

Mexican President Enrique Pena Nieto proposed on Monday reforms that would open up the country’s oil sector to foreign investors for the first time in 75 years, reforms that could spur economic growth and spotlight Mexico as a rising power as other big emerging markets struggle.

Mexico’s Foreign Portfolio Inflow Doubled In 2012 To $80.2 Billion

Foreign portfolio investments in Mexico doubled from $40.6 billion in 2011 to $80.2 billion last year, showed data from the central bank on Monday, following a pick up in investor confidence on optimism about reforms promised by Mexico’s new government.