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What Follows the Reform Agenda
MEXICO · Report · 06 Aug 2014

Executive Summary Now that the question of energy reform has largely been settled, most of the Pact for Mexico structural reform agenda has been signed into law with and political attention will turn for the next ten months to three main policy areas before everything becomes subsumed in the midt...

Energy Reform
MEXICO · Report · 05 Aug 2014

Executive Summary A series of reforms to the Mexican Constitution regarding the energy sector appeared in the December 20, 2013 issue of the Diario Oficial de la Federación, the federal government’s daily gazette, and took effect on December 21, 2013. They legally codified changes to articles 25,...

Fragmentation will Help the PRI
MEXICO · Report · 04 Aug 2014

Executive Summary July indicators point to a further firming of the economy, along with evidence that an expansive fiscal policy has yet to produce its desired effects.Employment and real wages have risen steadily since January 1st, and it appears that GDP growth accelerated an estimated 2.1% in ...

Making Good on Telco Reform
MEXICO · Report · 23 Jul 2014

Executive Summary A Law on Telecommunications and Broadcasting and another on the Mexican State’s Public Broadcasting System were recently passed during a special session of the Mexican Congress, and President Enrique Peña Nieto signed both into law on July 14. With the enactment of these seconda...

Final Leg of Energy Reform Debate
MEXICO · Report · 22 Jul 2014

Executive Summary The long road to approving secondary laws related to the energy sector has now entered its final stretch. But given that of all the Pact for Mexico structural reforms this is by far the one most crucial to the future of the economy, and the one on which the administration of Pre...

Oil Shortfall Hits Public Finance
MEXICO · Report · 16 Jul 2014

Executive Summary As we have noted in previous issues of Weekly Trends: Mexico Economy, the evolution of public finance in 2014 will be a determining factor in the government’s economic strategy not only this year but for the remainder of the administration. Of particular significance was the fac...

Mixed Picture on Security Front
MEXICO · Report · 16 Jul 2014

Executive Summary For years public opinion polls have consistently shown that most Mexicans regard insecurity as the main problem facing the country. During the government of ex-President Felipe Calderón (2006-2012) the fight against drug trafficking and criminal violence was by far one of the mo...

Mexico's Telecom Reform produces results earlier than expected
MEXICO · In Brief · 09 Jul 2014

Last week telecom’s secondary laws were approved in the Senate. Today as the Lower House passed the new legislation, with no major changes, América Móvil (AMX), announced they’ll divest some assets in order to avoid the sanctions of being a dominant telecommunications player, as was established b...

Public Disconnect on Structural Reform
MEXICO · Report · 08 Jul 2014

Executive Summary Now that the last major obstacle to a resumption of the reform process has been cleared – all but two states have made changes to the electoral laws necessary for them to comply with those adopted on the federal level – Congress has quickly begun to address bills regarding the t...

Buying Power Up, but Sales Flat
MEXICO · Report · 08 Jul 2014

Executive Summary During the first six months of 2014 we have witnessed a recovery in the main determinants of private consumption, but so far it has failed to help accelerate growth in sales. The flow of workers actively paying into the social security system through the first five months of 201...

Glimmers of Recovery, Amid Public Distrust
MEXICO · Report · 02 Jul 2014

Executive Summary Recent economic news was mixed, and in some cases surprising. One of the most encouraging reports was the April GDP proxy, which showed an unexpected 1.2% m/m activity increase, and a rise of 2.9% from April 2013. This latter result was the most positive in 16 months. We expect ...

Increasing Signs of Recovery amidst Government-Business Disconnect
MEXICO · Report · 01 Jul 2014

Executive Summary Economic news published this past month was decidedly mixed and in a number of cases proved surprising. One of the most encouraging pieces of evidence was the monthly GDP proxy for April, which revealed, after adjusting for seasonal factors and calendar effects, an unexpected se...

Reform Conflict Shifts to the States
MEXICO · Report · 25 Jun 2014

Executive Summary New complications have emerged in Mexico’s efforts to adopt the secondary laws needed to implement constitutional reforms affecting the energy and telecommunications sectors. The PAN cited two issues last week as it walked out of talks aimed at reaching consensus proposals on pr...

Signs of an Inefficient Fiscal Policy
MEXICO · Report · 25 Jun 2014

Executive Summary Last week’s report on aggregate supply and demand data for the first quarter of 2014 revealed a considerable reduction (-8.5%) in public gross fixed capital formation that stands in sharp contrast to the 33.7% increase registered in public sector budgeted physical investment dur...

What’s At Stake in the 2015 Elections
MEXICO · Report · 17 Jun 2014

Executive Summary By August all political parties will begin to tailor their every pronouncement, legislative vote and discourse with an eye toward what is most likely to attract support and minimize the risk of alienating voters ahead of the 2015 elections. There will be a lot at stake next June...