According to several reports that have
appeared in the Wall Street Journal and Reuters online this fall,Mexico has
experienced strong economic growth throughout the close of summer and autumn
months. In fact,Reuters reported that Mexico's economy has expanded by around
3.7% so far during the second half of this year,proving that it has continued
to recover from the global economic downturn.
According to the Wall Street Journal
online,the growth is due in part to advances in the agricultural production
and services sectors,which have both outpaced Mexico's industrial production
this year. The IGAE,which is the global indicator of economic activity and
measures GDP,showed that Mexico's overall economy has grown by 3.7% in the
second half of this year,as compared to the same period in 2010. In addition,
the agricultural production sector was up 7% and the services sector has risen
4% in 2011. The article also reported that Mexico's Finance Ministry estimates
the year-end growth will hit at least 4%,followed by a 3.5% growth rate in the
early part of 2012.
Reuters pointed out that the US economy
has only grown by 2.5% this year as of the third quarter,which is the fastest
it has expanded at any point over the last 12 months. Since the two countries
are longtime trading partners,this stronger performance could be partly
responsible for Mexico's recovery.
In addition,Mexico's finance ministry
reported that President Felipe Calderon has decreased the public-sector budget
recently to correct overcompensation during the recession,while Mexican
lawmakers have approved a budget for 2012 that will drive the country's 2012
budget to .4% of the GDP. By comparison,Mexico's 2010 deficit was at 5%. This
news is expected to inspire confidence among Mexico's central bank
policymakers,who are rumored to be considering a drop in interest rates.