Financial Times - Mexico's disappointing first quarter GDP figures must have been a hard pill to swallow. It’s not all bad news however. Economists expect the country to grow 3.9 per cent in 2014. Those numbers might quell some of the recent anxiety.Economy & Finance
Bank of Mexico predicts turnaround in 3rd quarter
El Economista - The Bank of Mexico (Banxico) predicts in a new report that the Mexican economy will begin a turnaround in the third quarter of this year prompted the a gradual recovery in the U.S. economy.
Telephony auction might draw foreigners
El Economista - Even with the spectrum limitations proposed by the Federal Competition Commission, the planned auction for Internet services and mobile telephony will be extremely attractive to foreign operators, said commission member Gonzalo Martinez Pous.
Wal-mart banks expected to reach 150 branches
El Semanario - At the end of this year, Wal-Mart Mexico plans to expand its bank "Wal-Mart Forward" with 150 branches and about 250 ATMs, primarily in the Mexico City metropolitan area, with a relaunch of the financial institution.
Investment in auto sector soars despite falling production
Maquila Portal - Foreign direct investment in Mexico's automotive industry increased by 67 percent in annual terms even as production dropped 44 percent. From 2007 to June 2009, automotive investment reached $3.66 billion.
Supreme Court refuses to suspend used car tax
Sentido Comun - The Supreme Court said it was inappropriate to suspend the 10 percent tax collection on used vehicles imports since it could create a problem for the national economy and the automotive industry through "indiscriminate introduction of vehicles to the country.
Government postpones auction for sugar imports
Sentido Comun - The Ministry of Finance postponed a third auction of permits to import 343,000 tons of sugar after the latest assessment showed domestic producers will not have as big a shortage as was anticipated.
$7.4 billion deficit mounts in first eight months
Dow Jones - Mexico had a fiscal deficit of 100.2 billion pesos ($7.4 billion) in the first eight months of the year as the government increased spending to cushion the effects of the recession while oil and tax revenue fell from a year ago.
Congress mulls tax on mining
Reuters - Mexico's Congress is considering a 4 percent tax on mining output as part of a fiscal reform package meant to boost government revenues during a steep recession. But all the major mining companies say the measure will stifle new investment and burden existing projects at a time when metals prices have slumped from record highs.
Trade between Nafta partners drops 28 percent
Dow Jones - Surface trade between the North American Free Trade Agreement partners Canada, Mexico and the United States fell 28 percent in July, continuing a trend of falling trade among the countries during the economic downturn. The latest drop was the seventh consecutive month with a year-over-year decline of more than 27 percent.
Luz y Fuerza rates criticized as highest in Latin Am.
El Economista - Luz y Fuerz inefficiencies have made its energy rates the highest in Latin America, said CONCAMIN energy chief James Williams. The company's assets are not sufficient to cover its debts or obligations to retirees and pensioners and the federal government has to provide about $40 million a year for the company to keep operating, he said.
