Tuesday, July 31, 2012

Mexican economy grew at more than double the U.S. rate in second quarter of 2012, reports Hacienda

Mexico's GDP growing much faster than its neighbor to the north, and national debt is far less

Mexico's federal tax collection and budget preparation agency said yesterday that the nation's economy grew by four percent in the second quarter, computed on an annualized basis. The Secretaría de Hacienda y Crédito Público reported Monday (July 30) that it was the country's 10th consecutive quarter of economic growth.

First quarter economic expansion was 4.6%, compared to the same reporting period in 2011. Annualized growth through June 30, 2012 was 4.3%. Based on those indices, experts anticipate that Mexico's GDP (Producto Interno Bruto) will grow about four percent in the present year. That figure is considerably better than the nation's central bank, Banixco, predicted in December 2011.

In sharp contrast, second quarter growth in the United States was 1.5% (2% in the first quarter of 2012), the result of sluggish consumer spending and no significant improvement in the labor market. U.S. unemployment remains firmly entrenched at over eight percent.

Mexico's Hacienda also reported that as of June 30, the national debt was 34% of GDP. The debt to GDP (Gross Domestic Product) ratio is a key figure in determining the economic health of a country. Experts say the higher the number the worse off the country is, as the economic engine grinds to a halt. The U.S. debt to GDP ratio is well over 100%, meaning America's ever-increasing debt - now $16 trillion - exceeds the annual value of goods produced and services delivered by the national economy.

Sept. 5 - Fiscal discipline coupled with a low debt to GDP ratio enabled Mexico to weather the world-wide financial crisis far better than many other nations, president Felipe Calderón told a conference of American businessmen in Mexico City today. U.S. ambassador Anthony Wayne accompanied him to the event.

Related posts:
Yucatán has well-educated labor force, but offers one of Mexico's worst job markets
Mexico has increased risk for a "catastrophic economic event" in 2012
Yucatán's growing public debt
What impoverished country is this?
U.S. stands at the brink
Crushed by poverty, Yucatán style

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