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MEXICO ¿Un juego de serpientes y escaleras?. Jorge G. Gonzalez Trinity University. Recent Economic and Political Events. Economic recovery in the U.S. Government gridlock Political scandals (AMLO and PRI) Mexico – U.S. relationship. Vital Signs. Is the link alive?.
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MEXICO ¿Un juego de serpientes y escaleras? Jorge G. Gonzalez Trinity University
Recent Economic and Political Events • Economic recovery in the U.S. • Government gridlock • Political scandals (AMLO and PRI) • Mexico – U.S. relationship
Vital Signs • Is the link alive?
Industrial Production Index(January 2000 = 100) Source: Banco de México and FED www.banxico.org.mx; www.federalreserve.gov
Vital Signs • Is the link alive? • GDP growth
Real GDP% yearly change Source: INEGI www.inegi.gob.mx
Vital Signs • Is the link alive? • GDP growth • Direct foreign investment
Foreign Direct InvestmentBillions of Dollars Source: Banco de México www.banxico.org.mx
Debt Market Foreign InvestmentBillions of Dollars Source: Banco de México www.banxico.org.mx
Stock Market Foreign InvestmentBillions of Dollars Source: Banco de México www.banxico.org.mx
Vital Signs • Is the link alive? • GDP growth • Direct foreign investment • Super Peso and foreign sector
Exchange RatePesos per U.S. Dollar Source: Banco de México www.banxico.org.mx
Exchange RatePesos per U.S. Dollar Source: Banco de México www.banxico.org.mx
Inflation Differential vs. Exchange Rate 317 Inflation 219 Exchange Rate Source: Banco de México www.banxico.org.mx
Merchandise TradeBillions of Dollars Imports Exports Source: Banco de México www.banxico.org.mx
Family RemittancesBillions of Dollars Source: Banco de México www.banxico.org.mx
Family RemittancesBillions of Dollars Source: Banco de México www.banxico.org.mx
Vital Signs • Is the link alive? • GDP growth • Direct foreign investment • Super Peso and foreign sector • Federal government balance
Government BalanceBalance / GDP Source: SHCP www.shcp.gob.mx
Vital Signs • Is the link alive? • GDP growth • Direct foreign investment • Super Peso and foreign sector • Federal government balance • War on inflation
Inflation Source: Banco de México www.banxico.org.mx
Vital Signs Diagnosis: Stability • Is the link alive? • GDP growth • Direct Foreign Investment • Super Peso and Foreign Sector • Federal Government Balance • War on Inflation
Political Environment • Presidential elections Felipe Calderón Roberto Madrazo Andrés López Obrador
Political Environment • Presidential elections • Structural reform paralysis
A Game of Chutes and Ladders? • Incredible transformation with stability • Fox’s legacy: Separation of powers • Much work to be done • Grave danger: Rule of law
MEXICO ¿Un juego de serpientes y escaleras? www.trinity.edu/jgonzal1 jorge.gonzalez@trinity.edu