Report Favorable for Mexican Economy

SOURECE: El Siglo de Durango: Crecere economia 3.8%, dice CEESP

A recent study by CEESP (El Centro de Estudios Economicos del Sector Privado, trans. The Center for Economic Studies of the Private Sector) titled “Expectativas macroeconomicas para el 2007” (trans. “Macroeconomic Expectations for 2007”) forecasts that 2007 will see reduced growth in the Mexican economy. Specifically, it contends that the economy will grow only 3.9% in 2007, a decrease from the 4.8% growth the nation enjoyed in 2006. While this means fewer new private sector jobs will be created this year than last, CEESP asserts that Mexico will nonetheless benefit from steady growth this year, as 2006 marked the highest rate of economic growth in Mexico since 2000.

The report also highlights risks that could further slow Mexican growth in 2007. Foremost among these is the United States’ greater than expected economic slowdown, as complicated by growing national and export deficits in that nation. On the domestic side, the possibility of further decreases in petroleum prices could also be negative for the Mexican economy this year. All the same, CEESP notes that despite slowed Mexican economic growth in 2007, all signs point to important economic advances being made this year, not the least of which is an expected overall reduction in inflation, which had increased more than 4% in 2006.

For discussion: While the relationship between the economic fortunes of the United States and Mexico are underscored in the CEESG report, to what degree do you think the U.S. economy affects other, farther-flung nations?

Is such economic influence good, bad, or indifferent?

Will nations like Mexico have the opportunity to take "center stage" as global economic powers?