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 Business News | May 2005 
Mexican President Fox Says Growth On Track
 Associated Press
| | Fox said Mexico's exports this year will reach nearly US$400 billion, equal to the rest of Latin America combined. |
President Vicente Fox on Wednesday shook off disappointing first-quarter growth figures, saying Mexico is still on track for annual economic growth of at least 4 percent.
But some investment banks lowered their growth estimates after the Treasury Department reported Tuesday that first-quarter output of goods and services rose only 2.4 percent from the year-ago period in seasonally adjusted terms.
Fox said that the early Easter week this year had held down the figure and added, "I'm sure that we are on the path for annual growth of 4 percent, or a little more."
He said Mexico's exports this year will reach nearly US$400 billion (euro317 billion), equal to the rest of Latin America combined.
The Treasury Department said growth would have been 3.8 percent if Easter week had not fallen in March.
But commentator Enrique Quintana wrote Wednesday in the newspaper Reforma that "regardless of what number you decide to take, the conclusion is that the Mexican economy is slowing down."
Credit Suisse First Boston lowered its 2005 GDP estimate to 3.7 percent from 4.4 percent as a result of Tuesday's report and Bear Stearns cut its projection to 3.4 percent from 4 percent.
Santander Serfin said the difference between the 3 percent first-quarter market expectation and the 2.4 percent year-on-year result probably was due to an unexpected 1.5 percent drop in agricultural production.
Last year's GDP growth of 4.4 percent was the fastest in four years. |
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