Jorge G. Gonzalez Against All Odds The Mexican Economy.

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Presentation transcript:

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