Mexico News Archive

Summary

The economic outlook continues to deteriorate notably, as the Mexican economy is expected to suffer the effects of the global financial crisis fully. In fact, some analysts are already anticipating an outright recession for the full year, following on the rapid deterioration of the growth outlook for the United States. Although the financial sector has so far been insulated against the effects of the credit crisis, Mexico will decelerate sharply as export growth moderates and remittances from abroad decline in the wake of the U.S. downturn. Meanwhile, Congress recently approved the budget for 2009, which includes a strong spending increase leading to the largest fiscal deficit in almost two decades.
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