Economics in the US; politics in Mexico
And the political effects are...Less money going to Mexico as U.S. economy falters
"The money that Mexicans living in the U.S. send home, a lifeline for both the economy here and millions of families, has suffered its steepest decline on record, dragged down in large part by the American financial crisis.
"The bad news, announced Wednesday by the Bank of Mexico, follows government assurances that the U.S. crisis would not have a severe effect on Mexico...
"Remittances are Mexico's second-largest source of foreign income, after oil exports...
This chart from the Federal Reserve Bank of Dallas"Countless Mexican towns are feeling the pinch, with small businesses failing and families struggling to make ends meet.
"The central bank also calculated that unemployment is running considerably higher among Mexican immigrants working in the U.S....
"Economic analyst Rogelio Ramirez de la O warned that the government minimizes the effect of the U.S. crisis at its own peril...
"'The government must first understand the reality and then communicate it clearly to Congress, to business leaders and to the public,' Ramirez wrote in Wednesday's El Universal newspaper. 'If the government does nothing, as it has so far, it will take this country down a dead-end road.'"
Labels: economics, Mexico, politics
posted by Ken Wedding @ 6:19 AM
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