Political Risk Latin America Blog @PolRiskLatam

Mexican Economy Hits Stride

Posted in News and Articles, Political Risk by politicalrisklatam on February 14, 2011

by Carin Zissis for Americas Society/Council of the Americas, February 11th, 2011..

The battle against organized crime brands most news flowing out of the United States about Mexico. But the tales of bloodshed and gun battles grabbing headlines overshadow another story: the positive outlook for Mexico’s economy. The Bank of Mexico on Wednesday boosted its forecasted 2011 growth rate to as high as 4.8 percent. Still, recent statements by some U.S. officials have stoked border-security fears.

Finance Secretary Ernesto Cordero, who traveled to New York this week to talk investment, told MarketWatch that Mexico has seen the world’s strongest growth in foreign direct investment after Singapore and that his country is adding 700,000 jobs per year. Moreover, new inflation figures “surprised on the downside”—as Roubini Global Economics put it—with inflation rates expecting to continue deceleration through the first quarter and projected to be as low as 3 percent for the year.

But during his visit, Cordero couldn’t avoid questions about security woes and how they might impact the Mexican economy. Over the past four years, roughly 35,000 lives have been claimed by violence connected to Mexico’s war on cartels. Cordero countered that the violence exists in focused areas of the country, adding that  Mexico overall is safer than cities such as Detroit and Miami—and that FDI figures prove investor confidence. (continue reading… )

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