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 Business News | June 2008 
Mexican Economy Can Maintain Growth - Finance Minister
 Reuters
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 |  | In previous episodes of global turmoil, the Mexican economy was ill-equipped to sort it out without much damage. Today, the Mexican economy has much stronger foundations.
- Finance Minister Agustin Carstens |  | | | |
Paris - Mexico is well positioned to stand up to financial market turmoil but needs to remain vigilant, Finance Minister Agustin Carstens said on Tuesday.
Cloudy prospects for the United States, Mexico's biggest trading partner, and high food prices had created global uncertainty but had not so far significantly hurt the overall Mexican economy, he said.
"Middle income countries have been resilient so far," he said in a speech at the Paris-based Organisation for Economic Cooperation and Development.
Recent fiscal and public sector reforms, combined with robust domestic demand, an export sector helped by the peso's decline in the wake of the weaker dollar and a well-capitalised private sector had all helped, he said.
"With all these elements in place, the Mexican economy is well prepared to maintain a positive growth path," he said.
The government expects full-year growth at 2.8 percent, down from the previous year's 3.3 percent growth.
But he said policymakers had to be on guard and ready to respond "should global financial conditions deteriorate further and global commodity prices continue to rise".
Surging energy prices have helped Mexico, the world's sixth-largest oil producer. Domestic demand has also been buoyant, boosted by a strong housing sector and government investment in highways and other infrastructure.
"In previous episodes of global turmoil, the Mexican economy was ill-equipped to sort it out without much damage," he said. "Today, the Mexican economy has much stronger foundations." |
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