MEXICO CITY—Mexican economic growth faces headwinds from global market volatility, government spending cuts and higher local interest rates, although the country is fairly well equipped to handle shocks such as lower oil prices and higher U.S. interest rates, Moody’s Investors Service said Wednesday Aug. 3.
“Gross capital flows to emerging markets have started to revert in 2016; although the trend change has been gradual in the case of Mexico, external volatility continues to weigh on growth,” the ratings company said in a report quoted by The Wall Street Journal.
A flexible exchange rate, foreign reserves around $177 billion and a recently renewed flexible credit line with the International Monetary Fund leave Mexico relatively well positioned to manage external shocks, Moody’s added.
Moody’s rates Mexico A3, a notch higher than Fitch Ratings and Standard & Poor’s, but changed the outlook to negative at the end of March after the slump in oil prices cut into government revenue and strained the finances of state oil company Petróleos Mexicanos.
To read complete story click here.
more recommended stories
Mérida and San Francisco outline projects to multiply the areas of opportunity
“As a Municipality, we work in.
On the issue of the Cuban doctors in Mexico, AMLO literally said: “Conservatives go to hell!”
Andrés Manuel López Obrador, president of.
Yucatan and Campeche, the states with the highest honey production in Mexico
Within the framework of World Bee.
Is Yucatan ‘running out’ of priests?
“In Yucatan there are around 150.
AMLO meets privately with the owner of Calica
President Andrés Manuel López Obrador held.
Playa del Carmen “suffers” the massive arrival of sargassum
The massive arrival of sargassum on.
IPN student reported missing in Mexico City
Mexico City authorities have searched for.
Tropical waves and possible hurricanes are approaching Mexican territory (CONAGUA)
Significant rains are forecast over the.
Owner of a school in Monterrey arrested for placing video cameras in the girls’ bathroom
A 73-year-old man who owns a.
Massacre in Celaya hotel leaves 11 dead and four injured; Guanajuato
Eleven people dead and at least.