Jorge G. Gonzalez Against All Odds The Mexican Economy
Recent Economic and Political Events ► U.S. recession and recovery Exports to the U.S. Remittances from the U.S. Fluctuations in oil prices Decline in direct foreign investment
Recent Economic and Political Events ► U.S. recession and recovery ► Export-led recession ► H1N1 Flu Virus ► Political gridlock ► Battle against organized crime
Recent Economic and Political Events ► U.S. recession and recovery ► Export-led recession ► H1N1 Flu Virus ► Political gridlock ► Battle against organized crime ► Mexico – U.S. relationship
The Mexican Economy ► North American business cycle
Industrial Production Index (January 2000 = 100, January 2003 = 100) Source: Banco de México and FED
The Mexican Economy ► North American business cycle ► GDP growth
Real GDP % yearly change (2003 Prices) Source: INEGI
The Mexican Economy ► North American business cycle ► GDP growth ► Foreign direct investment
Foreign Direct Investment Billions of Dollars Source: Banco de México DEM + NAFTA
Source: Banco de México Debt Market Foreign Investment Billions of Dollars
Stock Market Foreign Investment Billions of Dollars Source: Banco de México
The Mexican Economy ► North American business cycle ► GDP growth ► Foreign direct investment ► Mexican Peso and foreign sector
Exchange Rate Pesos per U.S. Dollar Source: Banco de México
Exchange Rate Pesos per U.S. Dollar Source: Banco de México
Inflation Differential vs. Exchange Rate Inflation Exchange Rate Source: Banco de México
Merchandise Trade Billions of Dollars Source: Banco de México Imports Exports
Family Remittances Billions of Dollars Source: Banco de México
Family Remittances Billions of Dollars Source: Banco de México
The Mexican Economy ► North American business cycle ► GDP growth ► Foreign direct investment ► Mexican Peso and foreign sector ► Fiscal policy
Government Balance Balance / GDP Source: SHCP
The Mexican Economy ► North American business cycle ► GDP growth ► Foreign direct investment ► Mexican Peso and foreign sector ► Fiscal policy ► Price stability
Inflation Source: Banco de México
The Mexican Economy ► North American business cycle ► GDP growth ► Foreign direct investment ► Mexican Peso and foreign sector ► Fiscal policy ► Price stability
► Rule of law ► Mexico – U.S. relationship ► War on poverty ► Energy sector and labor laws ► Domestic antitrust and competition ► Political Landscape PRI: Enrique Peña Nieto PRD: Marcelo Ebrard PAN: ? Current Challenges
Against All Odds The Mexican Economy