Mexico's growth rate is likely to reach 7.0% in second quarter but economy still is at risk
El Universal - Mexico's Minister of Finance and Public Credit said the country's economy is expected to have reached a growth rate of as much as 7.0 percent in the second quarter. Still, he stuck to the government's 4.0 to 5.0 percent projection for all of 2010.
Finance Minister Ernesto Cordero, in a Sunday press conference, said he is not ready to raise the government's 2010 growth projection because there still are risks to the global economy that pose a threat to Mexico's recovery.
The jump in the second quarter growth rate was likely caused by the tax reforms that went into effect in January, Cordero said.
Although unpopular, he said, the new taxes have contributed greatly to maintaining financial stability in Mexico.
Other experts attributed the second quarter's robust growth to rises in production, exports, domestic demand and employment.
This, together with external dynamism has led to the favorable evolution of financial variables such as country risk, interest rates, long term and an increase in commercial bank credit to the private sector.
