Economy & Finance

Economy & Finance

Some investors are skeptical of energy proposal

Reuters - After President Enrique Pena Nieto proposed his overhaul of Mexico's energy industry to offer private companies profit-sharing contracts, some investors said it might be too cautious and some sold Mexican assets.

S&P: No upgrade until energy reform is final

Reuters - Ratings agency Standard & Poor's will not consider upgrading Mexico's sovereign rating until planned energy reforms pass the Congress, credit analyst Lisa Schineller said on Friday.

JPMorgan cuts Mexico's growth forecast

Bloomberg - JPMorgan Chase & Co. cut Mexico’s 2013 growth estimate after industrial production in Latin America’s second-biggest economy surprised analysts by posting in June the second-biggest decline since November 2009.

Inflation continues to decline, hits 3.47% annual rate

El Economista - During July the Consumer Price Index fell by 0.03 percent, bringing the annual rate to 3.47 percent, its lowest level since February. The decline is due to declines in the price of fruits and vegetables, agricultural products and livestock.

Investment in businesses falls during May

El Economista - In May, the Gross Fixed Investment, which represents both domestic and foreign investment in machinery as well as construction, fell 0.7 percent over the same period of 2012, after a rise in the previous month.

Education costs have risen, many opt out

CNNExpansión - Families in Mexico have had to make more to pay for education. In the past decade, educational expenses rose 5.8 percent on average per household in the country, and many now are spending less or nothing on education.

Energy reforms could boost petrochemicals

CNNExpansión - The approval of an energy reform that promotes private sector participation would allow Mexico to recover its place in the global production of petrochemicals. Mexico ranked seventh in the 1980s and currently ranks 20th.

Energy reform will also target electricity monopoly

Reuters - Oil politics will dominate Mexico's energy reform debate, set to kick off in earnest this week, but the government is also poised to propose an electricity overhaul that could dramatically reduce costs for businesses by as much as half.

Debt and insecurity are plaguing Michoacan

CNNExpansión - Organized crime threatens to be severely damaging to Michoacan, where 81 businesses have closed in the first three months of the year due to insecurity. Tourism and agriculture, which support the state economy, have been impacted the most.

Remittances decline 7.2%, 12th consecutive drop

Sentido Comun - Mexicans working abroad sent home U.S. $1.945 billion in June, 7.2 percent less than the same month last year. It was the 12th consecutive decline and a symptom that some immigrants, although they have found jobs, are sending less than before.

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