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México creates the basis for high growth: IMF
Notimex / El Universal
Source: www.presidencia.gob.mx / Photos by Jesus de Avila
Washington, USA. The International Monetary Fund (IMF) today stated that the process of reforms into which Mexico is headed is establishing the basics for the country to experience high growth rates in the medium term.
"What we see is that the new government is developing reforms systematically designed to raise Mexico’s growth rate of in the medium term”, said Annop Singh, director of the Western Hemisphere Department of the IMF.
 He estimated that the performance the Mexican economy can experience during the next six to seven months must be seen as a very relevant factor.
At a press conference, Singh reiterated that while the fund’s forecast for this year is maintained still held under 3.0 percent, contrary to the Mexican government’s projections, the short term indicators are moving favorably.
Singh explained that as it is the country with the greatest integration to the economy of the United States, which is expected to decelerate to levels of 2.0% for this and the following year, "it is natural to expect that Mexico will be affected".
"Mexico’s growth is more sensitive to events in the industrial sector of the United States, more so than in the construction sector, and it is our appreciation that the industrial sector is being less affected than that of construction and that helps Mexico” he said.
While IMF’s forecast point to a growth of 2.9 and 3.0% for the Mexican economy during 2007 and 2008 respectively, the Mexican government’s estimates point to a growth of 3.0 and 3.7%.
Nevertheless, Singh said that emphasis should be placed on medium term growth.
"The real story in Mexico is that they (the government) have made significant changes in fiscal policy, in pension plans and in taxes” he remarked.
He recalled the government’s announcement of a long term initiative showing the per capita income growing during the next 20 years, an announcement in which the government indicated the areas to be reached with its structural reforms.
"I think Mexico is creating a new basis for a high long-term growth and that is the true story”, the IMF directive reiterated.
Source: www.presidencia.gob.mx/
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