2008 Will Be a Tough Year for Mexico

Mon24Dec2007

2008 Will Be a Tough Year for Mexico

capt.sge.fcy42.140307015051.photo01.photo.default-512x407.jpg Predictions of a recession in the U.S. in the coming year has experts in Mexico forecasting a bumpy ride for that country in 2008. The Center for Research of Private Sector Economy (CEESP) of Mexico says that the country's dependence on the U.S. will have a negative impact on the economy:

"...2008 is looking 'complex, because the strong dependence of our country on the productive mechanisms of the United states will mean huge risks if the weakness of our Northern neighbor gets worse."

According to the document, the prediction that the U.S. will slow growth in the last trimester of the year, with the possibility of falling into recession, has created a complex context for Mexico's economy.

Other contributing factors for the dismal outlook (according to the CEESP only 19% of economists in Mexico predict a change for the better for business) are rising fuel costs and the high prices of international goods.

As they say, when the U.S. sneezes, Mexico gets a cold. And if 2008 plays out the way economists predict it will, the bad economy in Mexico will inevitably impact immigration, as poorer Mexicans leave their homes to find a better life in the U.S.

Via / La Jornada

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