As we understand it, Mexico should be getting back to normal soon.
We hear that the schools and businesses will reopen soon.
To say the least: Mexicans need a little normalcy!
According to The Wall Street Journal: Mexico Estimates Flu Cost Economy $2.2 Billion
According to The Washington Post: Mexico Plans Stimulus Package to Help Country Rebound from Swine Flu
According to The Washington Post: Mexico Plans Stimulus Package to Help Country Rebound from Swine Flu
It's going to be another long year for Mexico and we are not talking about the war against the cartels.
The Mexican economy is now showing signs of a little slowdown.
Our friend Patrick Corcoran is a writer in Mexico. He blogs at Gancho. He was also a recent guest on our show.
"All of this piles more problems onto an already dismal economic outlook.
The predictions for 2009 have steadily grown more pessimistic throughout the year.
The recent forecast from UNAM (Mexico’s most prestigious public university) of a 4.8 percent contraction in 2009 now stands as a middle-of-the-road estimate.
A credit line from the IMF and the Fed had stemmed a six-month decline in the peso in early April, but the flu caused the Mexican currency to plunge once again.
On April 27th, the peso suffered a 4.1 percent drop against the US dollar, its worst performance in six months.
On Tuesday, at the height of the flu crisis, Mexico’s official statistical agency (INEGI) released more worrying pieces of economic information:
economic growth in February was negative 10.8 percent, a full percentage more than the expected result, and the largest one-month decline since Mexico started measuring monthly growth in 1993.
Industrial activity, a key indicator for Mexico’s economy, dropped by 13 percent."
What does this mean?
It means that the Mexican economy is suffering from the US and international slowdown.
No surprise in that!
We saw that before: 1982, 1994 and to some extent after 9-11.
It also means that Mexico is even more vulnerable than we thought just a few months ago.
We can not afford a collapse in Mexico. Therefore, it is critical for Pres BO and the Dems to take Mexico very seriously.
For example, we are still waiting for Pres BO to name an ambassador in Mexico.
How can this be? How can we be that slow in selecting an ambassador for one of our most important trading partners?
More than ever, Pres Obama needs to take Mexico very seriously.
In the meantime, we hope that the next "Cinco de Mayo" is more enjoyable for our Mexican friends! It'd be nice to see a few more Mexicans smiling here in Dallas and down in Mexico!
