Politics: Photo Finish Possible in State Contests
MEXICO · Report · 24 May 2017

The elections that will take place in four states June 4 will likely increase our understanding of the relative strength of each of the political parties heading into the presidential contest of 2018, as well as the momentum potential nominees will enjoy heading into their party’s respective cand...

Economics: Labor Market Weak Spots
MEXICO · Report · 24 May 2017

The labor sector of the Mexican economy has in recent years experienced an acceleration of growth in formal sector employment, as well as a steady decline in rates of joblessness, underemployment and informality. These developments are clearly positive in their own right, but they have by no mea...

Economics: Energy Reform’s Stubborn Hurdles
MEXICO · Report · 18 May 2017

Three years since the energy reform was signed into law positive results have been recorded but there remains much work to be done in strengthening state-owned companies. One of the most successful aspects of the energy reform has been the enthusiasm with which investors have responded to the bi...

Politics: The Emerging Face of Organized Crime
MEXICO · Report · 16 May 2017

The attack on an Army unit last week in the town of Palmarito Tochapan in which four soldiers and four civilians were killed during the confrontation, is just the latest incident in a long but accelerating history of fuel theft and smuggling nationwide, and a problem that exemplifies the ways in ...

To raise or not to raise interest rates? That's the question
MEXICO · Report · 12 May 2017

Some of our Global Source clients have expressed interest on Banxico’s actions next week, when the monetary policy board meeting takes place. Our thoughts is that Banxico should raise the rate next week 25 basis points (May 18), although there’s a high probability it won’t do it and wait until...

Economics: Public Finance in Right Direction During 1Q
MEXICO · Report · 11 May 2017

Last week the Ministry of Finance released preliminary data on public finance for the first quarter of 2017, which at first glance would appear to offer evidence that accounts are moving in the right direction to the extent that they are aligning with the government’s plan for this three-month pe...

Politics: A Weak Link in the Anticrime Strategy
MEXICO · Report · 11 May 2017

Last week the name of Dámaso López Núñez joined the list of scores of major drug lords the government has taken down since an offensive against organized crime was launched in 2007. That success in eliminating the key players in what had become some of the world’s most powerful drug cartels refle...

An Economy threatened by Protectionism and Uncertainty
MEXICO · Presentation · 04 May 2017

Mexico’s economic perspectives have improved compared to the start of the year, but uncertainty remains high. US protectionism is a real threat, although markets can compensate for the negative effects. Private consumption seems to be holding in early 2017, but some decelerating factors will inte...

Consumption Remains the Star of GDP Growth, While the 2017 Electoral Panorama Tightens
MEXICO · Report · 03 May 2017

The economic data released over the course of April offers encouraging signs of continuing growth in certain areas of the economy, but also potential harbingers of a slowdown that might emerge in future months. The Global Index of Economic Activity (IGAE) for February showed the economy grew ...

Economics: Public Finance Challenges Grow
MEXICO · Report · 26 Apr 2017

In late March of this year, Banco de México’s Board of Governors signed off on the audited financial statements for the close of 2016. The main takeaway from the announcement – although also notable was the record increase in the central bank’s operating surplus to 535.3 billion pesos – was the ...

Politics: A State of Systemic Corruption
MEXICO · Report · 26 Apr 2017

Mexico may be no stranger to the scourge of corruption, but it certainly had no precedent for the parade of state governors arrested, charged, and otherwise denounced for acts of corruption just in the past two weeks. Although the arrests were confined to two fugitive former governors – Tomás Yar...

Economics: Public Finance Challenges Grow
MEXICO · Report · 12 Apr 2017

Reports released last week by the Ministry of Finance provided insight into the recent evolution of the Mexican economy as well as the recent evolution of, and prospects for, both public finance and the country’s macroeconomic context. On one hand, the ministry published public sector financi...

Politics: Further Evidence of a PAN-Morena Race
MEXICO · Report · 12 Apr 2017

The polling data regarding the 2018 presidential election points to some clear trends. The incumbent PRI’s prospects have worsened considerably. Just since our November poll the percentage of those who picked the PRI as their choice in the presidential contest fell seven points to 19%. A year...

Hints of a Slowdown To Come, While Time Is Not On the Side of Peña’s Legacy
MEXICO · Report · 06 Apr 2017

The economic data released over the course of March provides encouraging signs of continuing growth in certain areas of the economy, but also potential harbingers of a slowdown that might emerge in future months. A case in point is private consumption, which remained the Mexican economy’s main...

Economics: Wages Start Lagging Inflation
MEXICO · Report · 30 Mar 2017

Initial labor market data for 2017 reveals weakness in real wages, which fell 0.6% year over year in January 2017, an erosion that resulted primarily from an acceleration of inflation to 4.72% that same month. In this context of resurgent inflation, the 1,361 wage reviews conducted under federal ...