Mexico indicated Wednesday it expects the downturn in the U.S. will mean much slower growth this year for its own economy, which depends on its northern neighbor for the bulk of its trade and investment.
The Treasury Department said it was lowering its forecast for Mexico's 2008 economic growth to 2.8 percent from 3.7 percent — a 24 percent drop.
"It is expected that the prevalent international economic scenario in 2008 will be less favorable for Mexico than what was anticipated," the department said in a report posted on its Web site.
More than any other country in Latin America, Mexico's economic fate is tied to the U.S., its partner in the North American Free Trade Agreement. Mexico sends more than 80 percent of its exports to the U.S., which is also Mexico's largest source of direct foreign investment and remittances.
Full story...here
Importance: This shows that Mexico relies heavily on the U.S. in terms of economic growth. When our economy drops, Mexico's does as well. This coupled with the economic problem of farming and farmer's income has many wondering when the Mexican economy will get back on track.
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The Treasury Department said it was lowering its forecast for Mexico's 2008 economic growth to 2.8 percent from 3.7 percent — a 24 percent drop.
"It is expected that the prevalent international economic scenario in 2008 will be less favorable for Mexico than what was anticipated," the department said in a report posted on its Web site.
More than any other country in Latin America, Mexico's economic fate is tied to the U.S., its partner in the North American Free Trade Agreement. Mexico sends more than 80 percent of its exports to the U.S., which is also Mexico's largest source of direct foreign investment and remittances.
Full story...here
Importance: This shows that Mexico relies heavily on the U.S. in terms of economic growth. When our economy drops, Mexico's does as well. This coupled with the economic problem of farming and farmer's income has many wondering when the Mexican economy will get back on track.
Grade this post!
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