Weekly Report - 24 May 2012 (WR-12-20)

MEXICO | Ferrari says no overheating risks. On 23 May at a Paris meeting of the Organization for Economic Cooperation and Development (OECD), Mexico’s economy minister, Bruno Ferrari, said that Mexico has shown that its economy can grow healthily without overheating, in contrast to both Brazil and Argentina. According to Ferrari, there is no risk of overheating, as Mexico has a more “ordered and robust” economic model than its regional peers. Ferrari pointed out that inflation in the past four years was “the lowest in decades”, which he said was an important testament to the authorities’ ability to successfully manage the economy. More importantly, Ferrari said, Mexico is Latin America’s largest exporter and the tenth largest in the world, having continually increased its global trade so as to sustain economic growth. Ferrari noted that foreign trade accounted for only 23% of Mexico’s GDP in 1993, but has since grown to 66%, as Mexico diversified its export markets and integrated into the global economy which is “what needs to be done in this crisis situation”, he stressed. Similarly Mexico’s finance minister, José Antonio Meade, also present at the meeting, stated, “We have a country whose exports have been diversifying and growing, along with increasing levels of domestic consumption and investment, while inflation is under control”. Meade said that thanks to balanced economic growth and a healthy financial position, Mexico now has every “certainty” that it can handle future shocks, including the unfolding drama in the Eurozone.

End of preview - This article contains approximately 677 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

• Subscribe
• Sign up for a one-time, 14-day trial