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Mexico moves towards economic recovery

Business Materials 8 July 2009 07:07 (UTC +04:00)
Mexico moves towards economic recovery

Mexico's economy is now beginning a process of recovery, aided by rising international prices for raw materials, said Finance Minister Agustin Carstens on Tuesday, Xinhua reported.
   "We have reached a floor and we are moving towards a more favorable economic reality in a few months," said Carstens at the annual councilors meeting of financial group BBVA Bancomer.
   "We are seeing some green shoots that signal recovery and this has been reflected in a rebound of raw material prices," he said.
   Mexico's economy shrank eight percent during the first quarter, as the recession in the United States hit Mexican export demand. The close linkage of Mexican banking system to crisis-hit U.S. banking system helped intensify the decline, by hitting credit and in turn domestic demand.
   "The pillars of Mexico's economy are healthy and there are no structural problems," Carstens told the bankers, forecasting a three percent growth for 2010 and even faster growth for the following two years.
   Carstens said that this was a marked contrast with 1995, when the Mexican economy entered a severe and long-lasting crisis largely triggered by the overvaluation of the peso.

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