How is U.S. Economic Slowdown Affecting Mexico?
June 30, 2011 § Leave a comment
Economists know the old saying, ‘When the United States sneezes, Mexico catches a cold’, referring to the heavy reliance Mexico has on the health of the American economy. According to this article, that doesn’t seem to be the case this time around, nor will it be in the future.
Mexican economists have issued revised and updated GDP forecasts that show lower numbers in the second quarter due to the delayed recuperation of the U.S. economy. Although this is no surprise, the difference is it’s said that the United State’s impact on the economy of Mexico will be minimal and temporary.
The article mentions how, ‘a few analysts even shaved basis points off their yearly growth expectation’, saying low performance ratings could affect the overall GDP. Regardless of these predictions, most economists have kept their forecasts in place, stating that Mexico’s economy, ‘could surprise on the upside once effects from the Japanese earthquake wear off.’
The second largest Latin American economy, Mexico sends 80% of its exports to the United States.