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ECONOMIC BRIEFINGS
Information provided by the New York Office of the
Mexico Trade Commission/Bancomext
MEXICO’S ECONOMIC GROWTH
Mexico’s GDP growth reached 2.4% during the first
quarter of 2005, and 3.8% without the seasonal
effect of the Holy Week. According to the Ministry
of Finance of Mexico, this growth was driven
primarily by the services and construction sectors
due to strong domestic demand. The government
expects to close 2005 at 3.7% growth rate.
MEXICAN EXPORTS SHOW A
SLOWDOWN
Mexico’s exports have grown 11.4% in the first four
months of the year, driven mainly by oil exports,
which are up 29%. Despite this huge increase in oil
revenue, exports growth this year is well below the
14.5% reached in 2004, mainly because lower demand
for cars and auto-parts from the U.S.
TOURISM IS BOOMING IN
MEXICO.
According to the Secretary of Tourism, Mexico’s
tourism-revenue increased by 19% in the first
quarter of the year compared to 2004 and the number
of tourists visiting Mexico jumped 28% year over
year in March 2005. There is enormous potential for
additional growth.
FOREIGN DIRECT INVESTMENT
FDI in Mexico reached 3.7 billion dollars in the
first quarter of 2005. This investment is up 16%
year over year. It is worth mentioning that this
amount of investment includes 600 million dollars of
new investments, 650 million dollars of maquiladoras
and 2.4 billion dollars of re-invested earnings and
inter-companies transfers.
TAX CHANGE FOR PEMEX
Mexico’s congress has approved a tax change that
will allow PEMEX to keep more of its revenue to
invest in exploration and development. Analysts said
the move is a major step because congress has
recognized that PEMEX needs to change. It is
estimated that the change will give PEMEX an
additional $2 billion to $3 billion a year.
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