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
AMLO says he will not ‘confront’ Catholic church over sexual abuse claims
(Reuters) – Mexican President Andres Manuel.
Water treatment plant shut down in Cielo Alto, Southern Mérida
“After causing damage to the environment,.
“Villaventura” Parque Vivo: Interactive farm to bring children closer to nature
The importance of the direct contact.
Yucatan seeks to reduce the number of suicides with prevention program
Yucatan doubles the national rate of.
Maya train features mixed investment: 10% government and 90% private initiative
The Maya Train project will be.
Progreso Beach and the mafia behind the Palapas
In an extensive investigation conducted by.
Passenger stabbed to death inside a Merida public transport bus
What started as a fight ended.
The National Institute of Migration seeks to facilitate the integration of foreigners in Yucatan
MERIDA YUCATAN.- The National Institute of.
Yucatan´s new gastronomy
The president of the National Chamber.
Meet Merida’s new “Park Rangers”
MERIDA YUCATAN.- In order to maintain the.