Sergio Sarmiento Mexico at a Glance

Sergio Sarmiento In a turbulent world, Mexico becomes an unexpected opportunity

Sergio Sarmiento Mexico’s edge Natural resources 2,000-mile border with the U.S. Free-trade agreements 8,000-mile coasts A growing, young population

Sergio Sarmiento The U.S. and the world have suffered in 2008 the worst financial crisis since 1929

Sergio Sarmiento Reasons for U.S. crisis Expansion of credit Lack of savings Budget deficit Current-account deficit

Sergio Sarmiento U.S. consumers have had a negative or extremely low savings rate for years

Sergio Sarmiento Factors for low savings rate Negative interest rates Tax breaks for home purchases Stock market boom Housing boom políticos

Sergio Sarmiento Not only consumers…. The U.S. government has also spent beyond its means

Sergio Sarmiento U.S. budget deficit % of GDP Mexican budget deficit

Sergio Sarmiento U.S.S federal public debt , , , (est) Year $bn % of GDP

Sergio Sarmiento Mexican federal public debt (est.) Year% of GDP

Sergio Sarmiento Budget deficits Mexico’s budget deficit in 2009 will be a consequence of increased investment in infrastructure The U.S.’s budget deficit in 2009 will be a consequence of the recue of the banking system

Sergio Sarmiento Mexico is better prepared than many countries for the present financial crisis

Sergio Sarmiento Mexico’s strengths Reduced budget deficit Low public debt Healthy banks Proximity to U.S. market

Sergio Sarmiento Infrastructure Mexico has serious infrastructure problems, but they are largely confined to the south Northern Mexico is well connected with U.S. market

Sergio Sarmiento Mexico still needs internal reforms Energy Fiscal Labor Education Justice And so on

Sergio Sarmiento These reforms would make the country far more competitive

Sergio Sarmiento A recession in the U.S. will affect Mexico…. …. and the rest of the world

But Mexico remains a good bet for companies that want to be well positioned when the eventual recovery comes

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