©OECD Observer 2010
![]() |
OECD |
Mexico: Starting to recover
Mexico has suffered its most severe recession since the 1994 currency crisis. Real GDP fell by 9.7% year-on-year in the second quarter of 2009, reflecting lower oil prices and lower exports, the outbreak of influenza and declining tourism revenues and worker remittances. Supported by the rebound in oil prices and increasing exports to the Unites States, the fall in activity slowed down and activity is now starting to recover. As monetary and fiscal stimulus are gaining traction, the recession is projected to bottom out in the third quarter of 2009 and GDP growth should rise gradually in 2010. The central bank has reduced the policy rate from 8.25 to 4.5% since February 2009 and the government implemented a fiscal stimulus package amounting to around 1.6% of GDP. Going forward, the central bank will have littleroom for further monetary easing as inflation is projected to remain close to the upper bound of its inflation target range. The automatic fiscal stabilisers should be allowed to work freely in 2010, but the fiscal stimulus should be gradually withdrawn if the recovery takes hold as projected. Consolidation measures proposed by the government to contain revenue shortfalls are necessary to avoid adverse financial market reactions.
Economic data
|
|||||||
OECD Observer Newsletter
Stay up-to-date with the latest news from the OECD by signing up for our e-newsletter :
Twitter feed
Digital Editions
Don't miss
-
The nuts & bolts of innovating:
Jamie Hyneman of Mythbusters -
The global tax rules are changing:
Pascal Saint-Amans, OECD tax chief -
Need a brainteaser?
Try the latest Observer Crossword Puzzle -
Interested in a career in Paris at the OECD?
The OECD is a major international organisation, with a mission to build better policies for better lives. With our hub based in one of the world's global cities and offices across continents. Find out more:- How do you measure a Better Life? The OECD has an interactive tool to evaluate well-being. Be a part of it. Create and share your Better Life Index.
Most Popular Articles
NOTE: All signed articles in the OECD Observer express the opinions of the authors
and do not necessarily represent the official views of OECD member countries.
All rights reserved. OECD 2020
Follow us