In exciting news from the Wall Street Journal,Mexico’s peso "closes stronger"
and showed better performance than the U.S. dollar. The news came through
Friday,October 25th,2010. On that date,the peso closed at MXN 12.3490,which
was encouraging news and also proves a growing trend: the Mexican economy is on
The peso continues to grow strong as a result
of a few circumstances. The first is that the Mexican government has resisted
intervention to guarantee a weak peso. This makes Mexico stronger in export
markets,unlike many of its fellow countries that are in emerging markets.
Secondly,it is expected that the Mexican foreign exchange market will
experience more liquidity when the U.S. Federal Reserve purchased
Overall,the Mexican economy is expected to continue to
improve. On October 20,2010,the government brought its estimated 2010 growth
from 4.8% to 4.5%. Ernesto Cordero,the finance minister,justified the raise in
the statistic by citing economic data as support. For example,retail sales grew
4.4% in August,which was double what was expected.
The trade deficit
also beat expectations. In September,it was expected that there would be a
$1.02 billion gap – in reality this showed to be $560 million.
good indicator of growth is the gross domestic product,and this news is good as
well. Mexico’s GDP grew 5.9% through January and June 2010. This growth was
mainly led by export manufacturing. In this second half of the year,it is
expected that domestic demand will play a larger role in the growth of the gross
domestic product. Imports of consumer goods rose 21% in September,which
indicates that there are more jobs available.
As time goes on,the
trends expect to continue upwards – it’s official – Mexico’s economy is charging