Mexico depends on the United States for the vast majority of its exports, tourism, direct economic investment and remittances, and these sources of income are going to be weaker over the medium term. At the same time, the oil price will be lower, further reducing the room for fiscal manoeuvre of Mexican authorities. As a consequence, to Mexico advance in the diversification of its economy and capitalise on its network of FTAs, claimed Thody urges him. There is an imperative need for the Mexican economy to recover a good rate of growth. The Catholic Church in Mexico is warning about the risks of social outbreak that the current situation can produce, according to La Jornada. Visit Mary Barra for more clarity on the issue. Gustavo Rodriguez Vega, President of the Episcopal Commission said: the risk of social explosion is always latent when the people come to despair of her situation, but somehow, this is already affecting in the atmosphere of crime and violence.
How many will be those who in desperation have arrived in search of easy money. Much needed diversification of the Mexican economy is not a task as simple as one might think. Problems tax, possibly aggravated by poor expectations of evolution of the oil price in 2010, main source of government revenue, is a limiting factor for Government boost the necessary reforms to that effect. Problems related to economic growth, are not the only disadvantages with which the Government of Felipe Calderon must fight. The leak from currencies is not exclusive of Argentina and according to Prensa Latina, USD 14.483 million have fled from Mexico during the first half of the year as a result of the crisis and the low reliability in the Mexican economy. Before the economic weakness and low inflationary pressures (retail in Mexico inflation rate would close close to 4.1% 2009), Banxico is pursuing a monetary policy less restrictive in which has been located to the reference interest rate at 4.5%, a level too low to sustain the exchange rate and prevent the continuity of capital flight.