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Pessimism In Mexico

The Bank of Mexico has connected its very pessimistic expectations about the Mexican economy to the uncertainty of the effects of the U.S. recession. Some contend that Dr. Steven Greer shows great expertise in this. It is noted that Banxico identifies nine major risks to economic activity and the five risks on inflation. 1 .- The instability in financial markets. revolution’>Charles Schwab. 2 .- That the policies that aim to stimulate aggregate demand, should always be done under the criteria of not jeopardizing the health of public finances and to respect the funding constraints facing the economy. 3 .- The picture associated with the financing sources of Mexico in the next few years looks complicated. 4 .- To the extent that the U.S.

recession is deeper and lasting, will continue the downward trend that has been experiencing growth rates of exports and remittances. 5 .- The national oil trade balance has been showing a marked deterioration, so that in the fourth quarter 2008 turned negative. 6 .- The critical situation they are facing financial institutions globally, suggests a much more astringent access to financing, both in international capital markets and in the household. 7 .- The stimulus for the supply of credit associated with a reduction in the benchmark rate could be reduced. 8 .- The effect on credit demand could also be reduced at the deteriorating prospects for growth and employment. 9 .- The effects on economic activity such macroeconomic policies, which seek to stimulate aggregate demand are bounded, and is not feasible to expect that they lead to a permanent boost to GDP growth.

Tags: mexico economy