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
Yucatecan engineer from Valladolid wins the Proser Prize
The School of Engineering of the.
Cozumel returns to lead the cruise industry in Mexico and South America
The general director of the Port.
According to Mexican businessmen, the Maya Train project will only be profitable for Quintana Roo and Yucatán
In spite of the planning of.
2018 Merida’s International Festival of the Maya Culture has been cancelled
The State Government reported that it.
Organic products are becoming more popular in Mérida
Everyday, more and more companies offer.
Local transport companies will invest 250 million pesos in new Cancun-Tulum Metrobus
In order to cover the growing.
While Venezuelans suffer and die of hunger, Maduro eats at one of the most expensive restaurants in the world (VIDEO)
A viral video showing Venezuelan president Nicolás.
Tulum’s “La Calma” Ecoresort master plan rejected by Semarnat
On September 12th, the environmental organization.
Organ donation culture increases in Yucatan
September 17, 2018 (ACOM) .- The.
New air route Merida-Villahermosa
Viva Aerobus, Mexico’s ultra-low-cost airline, with.