Mexico Safe Country In Economic Matters

Mexico, safe country in economic matters


Economy - Tuesday, February 15, 2011 (05:16 hrs)

•No risk of a relapse
•Provide global enterprises will increase by between 4.5 and 5%•"The Mexican currency is overvalued, there is excess liquidity"•Isabel Becerril

The online Financial
Mexico, February 15 .- Mexico is seen by large international corporations as a safe country in economic sphere, arguing that the government of President Felipe Calderón is taking the right steps to combat drug trafficking and end the insecurity.

The expectation of these firms around the country will close 2011 with a growth of between 4.5 and 5 percent, said in an interview with Hans Kohlsdorf, president of Global Business Executive Council (CEEG).

Considered that in 2012 will continue the growth of the Mexican market, because there will be many infrastructure projects and international financial sector recovered, which will facilitate the financing of the plans of both infrastructure and the development of private investment.

He clarified, however, that Mexico will advance at rates of 8 percent only until clarification of the structural reforms required both (Inland Revenue, labor and energy).

He argued that the nation has no economic risk of relapse. Rather, recovery is possible, although the American Union has had a shaky start.

The U.S. economy not in danger of falling into another crisis, he said, because the Barack Obama has taken the right steps to grow back EU.

Commenting on the level it is the peso against the dollar, Kohlsdorf said Mexican currency is overvalued, as in many other nations.

He explained that the assessment record many world currencies, except for China's yuan, is due to excess liquidity in the markets there.

As interest rates in the U.S. and in Europe are very low, these countries seek other investment options, among which there is a rebound in commodity prices and "sadly in an increase in value of many currencies."

The present value of weight of 12 pesos to the dollar, is not ideal. "I think this country live better with a peg that was located at 13 pesos per dollar."

Investment

In that vein noted that Latin American countries must break the paradigm of a strong currency is better for the economy, and to understand that an equilibrium exchange rate depends on the commercial terms of imports and exports.

He said that private enterprise is better than the federal government to continue with the objectives of the last 15 years to maintain healthy finances and solid, and letting the exchange rate is continue to develop the market.

The groups CEEG 39 companies with annual sales represent 10.5 percent of gross domestic product (GDP) of Mexico; its exports contribute 11.8 percent of those made by the country with investments in assets for more than six billion dollars , and generate over 500 thousand jobs.

Some companies that make up the Council are: American Express, ArcelorMittal, Axa Seguros Banamex-Citigroup, BBVA Bancomer, Ford Motor Company, Natural Gas, General Electric, Iberdrola, Nestle, Procter & Gamble, PepsiCo International, Pfizer, Siemens, Telefónica Móviles, Toshiba and Walmart.

In 2007 and 2008, business investment, another 13 members of CEEG thousand 500 million dollars, and in 2009 pledged to invest in Mexico six thousand 30 million. (With information from El Financiero / APB)
http://www.tibesarealty.com.mx/
www.tibesarealty.com.mx/wordpress/