Economy & Finance

Economy & Finance

Carstens says inflation to remain above target in 2014

Bloomberg - Mexico central bank Governor Agustin Carstens said 2014 inflation will remain above target next year after Congress approved higher taxes on junk food and soda. Mexico’s inflation rate will accelerate to about 3.5 percent next year, he said.

Maquiladora industry cries foul on new taxes

AP — Industry groups say President Enrique Pena Nieto's proposed tax overhaul, expected to pass the Senate late Tuesday or early Wednesday, could strangle one of Mexico's economic success stories, the border factories known as maquiladoras.

Canadian lobby says Mexico firm on mining tax

Reuters - Canada's top mining lobby said that Mexican lawmakers remain "firm" on approving a system of mining royalty payments, despite the industry's best efforts to lower a levy that companies say will deter investment.

Retail sales dip by 2.2 percent in August

El Seminario - Retail sales returned to negative territory after the an increase in July. Reductions were experienced in the subsectors of stationery, for recreation and other personal uses.

Plan to raise border states taxes faces oppostion

Reuters - A key part of Mexico's planned tax overhaul could come under pressure as it goes through the Senate, with a top lawmaker on Monday saying plans to raise sales tax in border states should be rejected.

Peso rally could spur bigger interest rate cut

Reuters - Mexico's central bank could lower borrowing costs by more than expected next week if the country's currency keeps gaining ground and undercuts the stimulus policymakers delivered to a weak economy with last month's cut.

Bernanke touts strides in Mexico's monetary policy

Reuters - Federal Reserve Chairman Ben Bernanke on Monday praised Mexico's central bank for reining in inflation and keeping financial crises at bay. He said transparency and independence had been key to increasing stability in the Mexican economy.

Carstens says Mexico prepared for U.S. default

Reuters - Mexico has the liquidity necessary to handle the extreme and unlikely event of any debt default by the United States, Mexico's Central Bank Governor Agustin Carstens said, highlighting Mexico's $170 billion in reserves and its flexible credit line.

Mexico's mayors are under the gangster gun

Global Post - Mexico is one of the stingiest countries when it comes to the share of public revenue that goes to mayors’ coffers. Now, the municipal treasuries are being sucked drier by gangsters’ demands for contracts and a cut of everything spent by city halls.

Industrial production rises by most in 6 months

Reuters - Mexican industrial output rose in August versus the previous month at the fastest pace in six months as construction and manufacturing strengthened, welcome news as growth sputters in Latin America's no. 2 economy.

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