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Published byEvan Stone Modified over 9 years ago
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Sergio Sarmiento Mexico at a Glance
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Sergio Sarmiento In a turbulent world, Mexico becomes an unexpected opportunity
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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
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Sergio Sarmiento The U.S. and the world have suffered in 2008 the worst financial crisis since 1929
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Sergio Sarmiento Reasons for U.S. crisis Expansion of credit Lack of savings Budget deficit Current-account deficit
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Sergio Sarmiento U.S. consumers have had a negative or extremely low savings rate for years
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Sergio Sarmiento Factors for low savings rate Negative interest rates Tax breaks for home purchases Stock market boom Housing boom políticos
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Sergio Sarmiento Not only consumers…. The U.S. government has also spent beyond its means
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Sergio Sarmiento U.S. budget deficit 20071.2 20083.2 200912 % of GDP Mexican budget deficit 20070 20080 20091.8
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Sergio Sarmiento U.S.S federal public debt 198098033.3 19903,23355.9 20005,67458 200910,02472.5 (est) Year $bn % of GDP
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Sergio Sarmiento Mexican federal public debt 199045.1 200019 200815 (est.) Year% of GDP
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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
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Sergio Sarmiento Mexico is better prepared than many countries for the present financial crisis
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Sergio Sarmiento Mexico’s strengths Reduced budget deficit Low public debt Healthy banks Proximity to U.S. market
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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
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Sergio Sarmiento Mexico still needs internal reforms Energy Fiscal Labor Education Justice And so on
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Sergio Sarmiento These reforms would make the country far more competitive
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Sergio Sarmiento A recession in the U.S. will affect Mexico…. …. and the rest of the world
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But Mexico remains a good bet for companies that want to be well positioned when the eventual recovery comes
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THANK YOU
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