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Possible Political Crisis Scenarios
MEXICO · Report · 19 Nov 2014

Executive Summary The tragedy of Iguala and the broad social movement that has emerged to demand justice for the victims have laid bare grave problems and deficiencies in Mexico’s political system. Outraged by the murder of the students and the direct role played by authorities in the crime, prot...

Foreign Exchange Rate Uncertainty
MEXICO · Report · 19 Nov 2014

Executive Summary The volatility that has swept international markets in recent weeks in response to the sluggish levels of growth expected in Europe and China has taken a significant toll on the peso relative to the US dollar. Although the shift in the exchange rate of recent weeks was pronounce...

Slumping Oil and Public Finance
MEXICO · Report · 12 Nov 2014

Executive Summary A series of recent economic indicators suggested a degree of activity during the third quarter shy of what most analysts had been projecting, albeit a firmer level than we witnessed early in the year. Median market estimates of GDP growth for full-year 2014 slipped to 2.3% in Ba...

Security and Rule of Law Top the Agenda
MEXICO · Report · 12 Nov 2014

Executive Summary Last week the authorities announced two major developments in the case of the 43 Ayotzinapa students. The first was the arrest of the two top suspects in the case: the former mayor of the city where the students “disappeared”, along with his politically powerful wife. Although i...

A Battered Image
MEXICO · Report · 05 Nov 2014

Executive SummaryIndicators published in October continued to offer mixed signals about the direction of the Mexican economy. The monthly GDP proxy (IGAE) for August showed only a 1.3% activity increase y/y, down from 2.3% between May and July. Both industrial and service sector growth slowed. Th...

Mixed Credit Picture Year to Date
MEXICO · Report · 29 Oct 2014

Executive Summary Growth in financing to the non bank private sector in Mexico has been led largely in recent months by a significant rise in external financing by large companies at the same time as the flow of consumer credit and loans to smaller companies remains weak. Growth in consumer credi...

Political Reform Speed Bump
MEXICO · Report · 29 Oct 2014

Executive Summary Delays in passing political reform will require a major rethinking of the current legislative calendar as informally conceived by the three main political parties. At stake is not only whether the structural reform items listed in the Pact’s agenda can win approval during the cu...

Toward a Political Crisis?
MEXICO · Report · 28 Oct 2014

Executive Summary The September 26 murder of six people, and the disappearance that same evening of 43 students in the state of Guerrero remains a totally open case. With the main suspects (the top officials in the city of Iguala) in hiding, the authorities have only just now begun to indicate th...

Court to Decide Fate of Ballot Initiatives
MEXICO · Report · 21 Oct 2014

Executive Summary Last week, the National Electoral Institute (INE) announced that the four political parties that proposed ballot initiatives for next year had all managed to collect the minimum number of valid signatures needed (at least 2% of all registered voters or around 1.6 million signatu...

Energy Reform Faces New Hurdles
MEXICO · Report · 20 Oct 2014

Executive Summary In recent weeks progress has been made in the implementation of the country’s energy reform thanks to passage earlier this year of implementing laws, whose main objectives, contents and characteristics were discussed in detail in two special reports that were published on August...

Education, Labor Reforms Fall Short
MEXICO · Report · 14 Oct 2014

Executive Summary Among the many reforms that were adopted in the past 18 months two are of special importance to the future of education and the labor market in Mexico.But the reform designed to improve the quality of public education and the reform intended to create more flexible labor markets...

Iguala, No Security Strategy in Sight
MEXICO · Report · 14 Oct 2014

Executive Summary Evidence continues to grow that the September 26 attack on students from a rural teachers’ college in the city of Iguala, Guerrero, was carried out by municipal police in coordination with organized crime.The initial toll includes six people killed, three of whom were students a...

Energy Reform: An Analysis Of Its Fiscal Implications
MEXICO · Report · 08 Oct 2014

Executive SummaryA series of changes to articles 25, 27 and 28 of the Mexican Constitution regarding the energy sector that constitute part of the country’s broader energy reform appeared in the December 20, 2013 issue of the Diario Oficial de la Federación, the federal government’s daily gazette...

Productivity Lags, Wages More So
MEXICO · Report · 08 Oct 2014

Executive Summary Labor productivity per hour worked in Mexico has showed relatively lackluster growth over the past five years, having risen by only 10% since the first quarter of 2009 largely on the strength of a 12% increase in activity in the dominant service sector. Productivity in the indus...

Violent Threats to Governability
MEXICO · Report · 08 Oct 2014

Executive Summary In recent weeks a number of violent incidents, as well as the emergence of a student movement at the second most important public institution of higher learning in Mexico, have tested the government’s ability to guarantee the security of Mexican citizens and to avoid head-on con...