Mexico's GDP for the third quarter fell short of analyst predictions for the first time this year. Chief Economist Sergio Martin at HSBC Mexico says this number is partly skewed by unexpected growth in the first and second quarter (4.9 from 4.6, 4.4 from 4.1). From a phone interview in Mexico City, Martin was quoted as saying "The Mexican economy is dynamic, probably more dynamic than I thought." After a recent break out of bird flu, Mexico's secondary economic strength agriculture and forestry. The flu outbreak limits the amount of interest rate cuts that the banking system can lend.
The dynamism that Martin is talking about is the cooling of investments from the US as need for automated machinery, Mexico's chief export product to its chief export state, is declining. Fear of hitting a $600 billion fiscal cliff that is trigger automatic spending cuts and tax increases.
The Mexican government is relying on talks this week within the US between President Obama and Democratic and Republican party leaders to encourage growth that will extend down into Mexico, if production needs increase.
Mexico sustaining growth in crucial for a country that has such economic stratification and one of the largest cities in the world. Mexico will either have to bide its time and hopes that the US economy can rebound in a timely manner, or begin to try to compete with China in the manufacturing race, which it will most likely lose.
http://www.bloomberg.com/news/2012-11-16/mexico-gross-domestic-product-expands-0-45-in-third-quarter.html
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