| | |  Business News | October 2008 
Mexico Revising Economy Outlook Amid Global Crisis
 Jason Lange - Reuters
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 |  | Mexico has a solid, solvent banking system which is making an important contribution to the growth of our economy.
- Deputy Finance Minister Alejandro Werner |  | | | |
Mexico City - Mexico is revising its economic outlook in the wake of the global financial crisis, a top official said, while reiterating that the country's banking system is solid.
"We are revising the macroeconomic framework to include the recent events in financial markets and the world economy," Deputy Finance Minister Alejandro Werner said.
The revision would be included in forecasts for major economic variables the government supplies Congress to guide the drafting of the federal budget for 2009, Werner said.
He did not say which indicators were under revision, but the budget forecasts include economic growth, inflation, average exchange rates and oil prices.
The government currently sees the economy growing 3 percent in 2009, up from the 2.4 percent growth rate it expects for this year.
A senior lawmaker said last week that the Finance Ministry could revise its 2009 budget proposal to change the country's economic growth and oil price estimates as the impact of the global credit crisis spreads.
Werner, meanwhile, stressed the soundness of the country's banking system.
Mexico has "today a solid, solvent banking system which is making an important contribution to the growth of our economy," he said.
Mexico's banks have largely avoided turmoil from the credit crisis since their focus has been on traditional lending, not dabbling in risky subprime mortgage niches or unpredictable derivatives.
Leading Mexican banks, owned by big international players like Citigroup (C.N), BBVA (BBVA.MC) and HSBC (HSBA.L), expanded private lending by as much as 50 percent a year in 2005 and 2006, but have since trimmed expansion to about 11 percent annually.
In recent months, banks have become more careful about handing out new credit cards and consumer loans, sectors increasingly affected by nonperforming loans.
(Additional reporting by Luis Rojas Mena; Editing by Dan Grebler) |
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