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San Antonio Business and Economics Society. The Mexican Economy: Stability or Stagnation?. Jorge G. Gonzalez Trinity University. Recent Economic and Political Events. Economic recovery in the U.S. Mexican elections and government gridlock Mexico – U.S. relationship. Vital Signs.
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San Antonio Business and Economics Society The Mexican Economy: Stability or Stagnation? Jorge G. Gonzalez Trinity University
Recent Economic and Political Events • Economic recovery in the U.S. • Mexican elections and government gridlock • 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% Change Source: Banco de México www.banxico.org.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
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
Inflation Differential vs. Exchange Rate 311 Inflation 226 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
Stagnation? • Structural reform paralysis • Fiscal System • Energy Sector • Labor Market Regulations • Judicial System and Rule of Law • Educational Reform X
Stagnation? • Structural reform paralysis • Corruption scandals • Anemic growth • Lack of excitement
Stability or Stagnation? Source: crawfordfineart.com
Stability or Stagnation? • Incredible transformation with stability • Much work to be done • Speed matters
San Antonio Business and Economics Society The Mexican Economy: Stability or Stagnation? www.trinity.edu/jgonzal1 jorge.gonzalez@trinity.edu