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Weak Links in 2015 Budget
MEXICO · Report · 30 Sep 2014

Since the Ministry of Finance handed Congress the administration’s 2015 budget proposals, a number of officials have come forward to argue that if approved, this budget would prove to be both responsible and one that would push public investment to new record highs, even going so far as to argue ...

Harbingers of More Good Things to Come
MEXICO · Report · 30 Sep 2014

Executive Summary Signs of recovery are growing broader, and more pronounced, suggesting brighter prospects for H2.Industrial production in July was growing 2.1% faster than a year earlier. This was the sixth increase in 2014, and the second biggest, after the 3.6% increase in March. The Mexican ...

Public Security: More Money, More Work
MEXICO · Report · 24 Sep 2014

The spending budget proposal for 2015 falls short when it comes to matters of public security. Despite an ambitious plan to overhaul the justice system and the need to strengthen the role state and local security forces play in the fight against crime, the public security budget for next year rem...

A Solid Budget Proposal
MEXICO · Report · 19 Sep 2014

Executive Summary The Ministry of Finance handed Congress on Friday, September 5 its budget proposals for 2015, which include the General Economic Policy Criteria for the year, a text that contains the economic and financial assumptions on which all budget proposals are predicated, as well as the...

New Mechanics of Overcoming Distrust
MEXICO · Report · 19 Sep 2014

Executive Summary Throughout the final 70 years the 20th century, the PRI was the perennially incumbent party, one that enjoyed the full support of every outgoing administration and free rein in deploying public funds to assure its perpetual hold on power. As smaller parties slowly were allowed t...

Expect Tough Talks in Congress
MEXICO · Report · 09 Sep 2014

Executive Summary When President Enrique Peña handed Congress his second State of the Nation Report, the first session of the final year of the LXII Legislature formally got underway.In contrast to the fall session of 2013, there will be no discussion of major constitutional reforms, nor any mech...

‟Gendarming” Cyclical Businesses
MEXICO · Report · 09 Sep 2014

Executive Summary Mexico’s Gendarmerie began operations in recent days as a new division of the Federal Police, an issue we analyzed in the politics section of our most recent monthly report, “Firming Up – But For How Long?” published September 3. The new corps’ mission will be to “protect certai...

Firming Up – But For How Long?
MEXICO · Report · 03 Sep 2014

Executive Summary Economic news was largely unchanged this month. Areas of weakness, such as internal consumption, tended to fall less, while positive ones, such as industrial activity, recovered faster. The labor market also firmed up, and included the strongest gain in manufacturing employment ...

Hurdle of Energy Reform Implementation
MEXICO · Report · 26 Aug 2014

Executive Summary Now that the implementing laws that form the practical underpinning of the country’s energy reform have been signed into law, the new challenge will be to effectively implement them. The degree to which the energy reform proves successful in practice will be crucial for the futu...

Growth Accelerates in 2Q14
MEXICO · Report · 26 Aug 2014

Executive Summary During the second quarter of 2014 Mexico’s Gross Domestic Product reversed the slowdown observed since the beginning of 2013. Original series data from the National Statistics Office (Inegi) for the April through June period show that almost all components of GDP slowed their pa...

Oversight and the Price of Congress
MEXICO · Report · 19 Aug 2014

Executive Summary Much has been written about the high cost of Mexican democracy, including the funds needed to sustain the Mexican Congress. Part of the problem stems from the fact that the legislative branch acts as both judge and jury when allocating public funds. There has been a considerable...

Domestic Savings at Midyear
MEXICO · Report · 19 Aug 2014

Executive Summary Domestic financial savings in Mexico began to recover in the second quarter of 2014 as the public deposited funds with their banks at a greater rate than in either 2013 or the first quarter of 2014. That increase in deposits was achieved despite the fact that real term interest ...

The Road to the 2015 Elections
MEXICO · Report · 15 Aug 2014

Executive Summary All political parties will be focusing their attention between now and next summer on the 2015 federal elections, in which all 500 seats in the Chamber of Deputies will be up for election, as well as state and municipal offices in 15 states. The electoral calendar starts when el...

How to Raise the Minimum Wage
MEXICO · Report · 15 Aug 2014

Executive Summary The country’s minimum wage has emerged as a major topic in the national political debate in recent days. Mexico is the only Latin American country in which the minimum wage is below the extreme poverty line, according to the Economic Commission for Latin America and the Caribbea...

The Limits of Financial Reform
MEXICO · Report · 06 Aug 2014

Executive Summary The congressionally mandated report from the Federal Economic Competition Commission (Cofece) on the state of competition in the financial sector lacked the teeth of the telecommunications regulator’s equivalent report earlier this year, which among its main decisions designated...

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