Fragmentation will Help the PRI

MEXICO - Report 04 Aug 2014 by Mauricio Gonzalez, Guillermo Valdes and Esteban Manteca
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 Q2; growth is likely to average more than 3% during H2. But such improvements have yet to permeate consumer sentiment, which continues to sink deeper into pessimism, keeping a lid on any consumption recovery. One favorable development was the recent passage of the final aspects of the telecommunicat...

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