According to the Mexican economists, Mexico's economy is slated to see 5% growth in 2010.
The Mexican economy contracted 6.5% last year due to several events:
-Swine Flu (H1N1 flu) cost the country
-Exports to the US were down significantly, due to the financial meltdown in the US
-The peso was very volatile and at one point reached $15.38 MXN = $1 USD
At the end of 2009, economists were only predicting a 3% increase in the economy. Why the sudden increase?
-One of Mexico's main exports, automobiles, rose 85% in March
-290,000 jobs were added in the first quarter of 2010, according to President Calderon
-The peso has stabilized somewhat and is now around $12.17 MXN = $1 USD
Despite the positive signs, consumer confidence and foreign investment are still lagging. Consumers are being very careful with where they spend their money. Mexico is still very dependent on what is happening in the US economy, so the sooner we see signs of improvement in the US, the sooner it will trickle down to Mexico.
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