Mexico
Mexico country policy
Policy established 20 August 2009
- No Restrictions
- The country ceiling is 2000 mln euro
- Early warning signal 1500 mln euro
- - of which was used as at 2010-07-31 668 mln euro
Country class: 3
Mexico country facts
Atradius Dutch State Business Economic Research
Country Report last updated 09 August 2010
Country MEXICO
Political Situation
Rather Stable; Poor Security Situation
Head of state
President Felipe Calderón, remaining 3 years in office
Form of government
Government of the Partido Acción Nacional (PAN).
Internal Economic Situation
Recovering From Recession
General situation
In 2009 the global economic downfall, notably the recession in the USA, has hit the domestic economy very hard: a real GDP-decline of 6.5%. Real exports dropped by >15%, domestic demand by 8%, especially business investments (-10%). In 2010 economic recovery that is based on a strong upswing of exports and some rebound in private sector consumer/investment demand. Real GDP will increase by appr. 4.6%. Despite some decline, inflation rate is still exceeding the Banxico-margins of 2-4%. The banking sector is well capitalised and liquid. However, low banking penetration (total credit < 20% GDP, constraining credit growth to stimulate private consumption). Limited exposure to foreign currency risk. More unfavourable Corruption Index (now 89th out of 180).
External Economic Situation : Good Solvency And Liquidity
Main sources of foreign exchange
Manufactured goods (73%, of which maquiladora 45%); oil (13%); workers’ remittances.
Main foreign markets
United States (>80%), other Latin America (5%).
Main expenses of foreign exchange
Intermediate products (73%), consumer goods (14%).
Balance of payments
Because imports dropped faster than exports, the trade and current accounts improved in 2009. The deficits are easily financed by capital imports, except for last year when FDI dropped heavily and gross reserves hardly accumulated. During 2009 the average peso rate of exchange fell by >20% versus US$.
