2. Sergio Sarmiento Mexico at a Glance

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

4. 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

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

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

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

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

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

10. Sergio Sarmiento U.S. budget deficit 20071.2 20083.2 200912 % of GDP Mexican budget deficit 20070 20080 20091.8

11. Sergio Sarmiento U.S.S federal public debt 198098033.3 19903,23355.9 20005,67458 200910,02472.5 (est) Year $bn % of GDP

12. Sergio Sarmiento Mexican federal public debt 199045.1 200019 200815 (est.) Year% of GDP

13. 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

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

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

16. 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

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

18. Sergio Sarmiento These reforms would make the country far more competitive

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

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

21. THANK YOU