Headwinds Kicking Up

MEXICO - Report 04 Feb 2015 by Mauricio Gonzalez, Guillermo Valdes, Esteban Manteca and Ernesto Cervera
Executive Summary Mexico’s non-oil exports remained strong in 2014, according to the latest data, with private investment and consumption recovering faster, and public investment continuing to fall. In H2 the economy regained its “natural” growth rate, a trajectory it could sustain through 2015. But headwinds may be kicking up, as the authorities are slashing spending, oil prices continue to fall, and business optimism wanes. While the holidays seem to have lightened consumers’ moods, business sentiment weakened, in both manufacturing and commerce. The prospects for business sentiment recov...

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