Mexican economy down 9 pct, Calderon acknowledges
VLKAY | Quote | Chart | News | PowerRating -- President Felipe Calderon said
here Monday that the latest figures indicate Mexico's economy
contracted 9 percent during the first half of the year compared with
the same period in 2008.
"It's estimated that in the first half of the year (the decline)
could have been 9 percent or more, at an annualized rate," he said
during the inauguration of an expansion project at Volkswagen's
massive automotive complex in the central city of Puebla.
Calderon added, however, that unemployment rose only three
percentage points from Jan. 1 to June 30.
"Truly, we have been able to contain the recessionary impacts up
to a certain point, which was to be expected. And we are working
hard, not just to surmount the economic crisis, but to be able to
move forward with more rigor and more strength," the rightist
president said.
He also pointed to the $4 billion in foreign direct investment
Mexico received in the first six months of 2009.
Calderon said Mexico has a chance to make sure it is "better
positioned at the international level in regard to competitiveness"
once the world emerges from recession.
Several international business consultancies, he said, have
concluded that Mexico can offer lower production and logistics costs
and a more highly skilled workforce than China, India or Brazil.
Citing the $1 billion investment in the Puebla complex VW
announced Monday, Calderon said that "Mexico will be the spearhead
of the recovery of the global automotive industry."
The auto sector represents 20 percent of Mexico's gross domestic
product and supports more than 3 million households, the president
said.
The consensus of private economists surveyed last month by the
central bank is that Mexican GDP will shrink 9.5 percent in the
second half of 2009. EFE
jrm/dr
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