Silence Deafening In Mexican Marketsequity Markets

摘要

The slowdown in the US economy is having a devastating impact on the Mexican economy, says Walter Molano, head of research at Connecticut-based BCP Securities. Government spending will increase 16% year on year as a result of new infrastructure programmes, pushing fiscal accounts into the red with the fiscal deficit moving up to 1.8% of gross domestic product, the biggest shortfall during the past six years, he says. The power of the contagion has taken the country by surprise, admits Pedro Zorrilla, general manager of the Mexican stock exchange. There are a number of differences between this crisis and its predecessors, especially its origins in the developed world and its epicentre focused on the banking system rather than organised capital markets, he adds.