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Mexico Boasts It is Immune to the European Crisis

Article Summary:

Mexico Exchange President, Luis Tellez, boast that his country will see very little impact of the European Crises and gives a growth estimate of 3.5% for 2012. Mexico is one of the world’s largest markets, said Tellez, who believes that the country will continue to see a strong economy.

Original Article Text From El Universal via Google Translate :

Mexico, the least affected by crisis: BMV

Mexico would be one of the least affected if Europe falls into recession, due to the economic strengths have said the president of the Bolsa Mexicana de Valores (BMV), Luis Tellez.

Mexico’s economy projected to grow 3.5 percent during 2012 and said: ‘I have the same estimate of government. So far the U.S. has not changed, Mexico is in a privileged position, but if Europe is still have to get off ‘. In the economic package for 2012 that the Ministry of Finance and Public Credit (SHCP) sent to Congress, is expected to grow 3.5 percent, but lawmakers adjusted it to 3.4 percent.

In an interview, Tellez Kuenzler called ‘extremely complex’ the international situation, for while Europe took measures aimed at alleviating the sovereign debt crisis are still insufficient.

‘We will be in the group of countries that will affect us less because we have a low trade and financial exposure to Europe and the U.S. high’, and it appears that the U.S. economy begins to pull it, he said. He added, Mexico ‘has to play with’, as it reported a debt of 30 percent of gross domestic product (GDP) and low interest rates, which can fund these liabilities with taxes received by the federal government.

“Mexico is in a very strong, the economy is very competitive, we had inflation, productivity in Mexico has increased substantially, we are not relying on low wages’ and we are beside the world’s largest market, he stressed.

Following the award of the 2011 Financial Markets noted that the country’s growth during 2010 and 2011 was because the U.S. pulled the Mexican economy, resulting in job creation and increased domestic demand.

He reiterated that “Mexico is not bad, on the contrary, Mexico is very well in economic terms, what happens is that we can isolate if the Europeans come in a very strong recession, obviously the rate of growth of world economy in general will to fall and we will have an impact we Chinese and whoever it is. ‘

Kuenzler Tellez stressed that the EU is the largest economic area in the world, so if you reduce your consumption will be a problem that affects everyone.

He believed that European banks, especially those who have capital in sovereign bonds, which are impacted by high interest rates and also have to comply with the provisions of Basel III will tend to restrict credit to capitalize, as factor which is a contraction of the economy.

However, stressed that despite the situation in European banking, contagion to banks in Mexico would be little because the institutions in the country are well capitalized and governed, even the foreign subsidiaries, under Mexican law and the monitor local authorities.

Link to Original Article:

From El Univesal

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