Mexico: Ready for the potential effects of global crisis

Mexico’s Minister of Finance and Public Credit, Ernesto Cordero Arroyo, issued a statement[i] on the official website of the Ministry, reporting the situation of Mexico to address the potential impacts of the current crisis.

He noted that “although it’s quite clear that the Mexican economy is not invulnerable and could feel the effects of the international environment if they were more severe” the country is well positioned to address them.

Announced that Mexico has more than 200 billion dollars of reserves, that the domestic debt was -in the first half of the year- of 21.4% of GDP and the external was 9.5% of GDP. The country’s growth exceeded 4% in the first half of 2011 and this year will raise the highest income tax in the country’s history, about 10.4% of GDP, among other positive indicators.

He said that the global growth prospects are negative and it is expected that all the economies of the world will be affected at different levels; Mexico should not lower its guard and should be alert to mitigate impacts.