Mexico's Stock Exchange building. (PHOTO: elfinanciero.com)
Stock market analysis firm Zack’s Research writes that Mexican financial assets have become more volatile as the latest polls tracking the upcoming U.S. presidential election have shown Democrat candidate Hillary Clinton and Republican nominee Donald Trump are engaged in a neck-and-neck fight. We believe this volatility may heighten as the election is just around the corner. Historically, this is the first time that the Mexican financial sector and its overall economy are so closely related to the outcome of the U.S. presidential election.
Why Mexico?
Mexico came to limelight of this year’s U.S. presidential election once republican contender Trump makes this country a prime target. Trump has accused Mexico of taking away jobs from Americans. He questioned the viability of the landmark 1990s trade agreement between the U.S., Mexico and Canada. He said that he will renegotiate the North American Free Trade Agreement, commonly known as NAFTA, or pull out of it, and build a wall along the U.S.-Mexico border to curb illegal immigration.
This would hamper the trade relationship between Mexico and the U.S., and hurt Mexico’s exports. Notably, 81% of its exports go to the U.S. that makes up for more than one-third of Mexico’s GDP. The renegotiation might impose a 35% tariff on the import of Mexican goods, like cars, to the U.S. Trump’s policies could prove a nightmare for the Mexican economy with less employment, less income, lower exports, and thus a weakening currency.
To read complete article click here.
Source: nasdaq.com
Comments
more recommended stories
“Tribu” Environmentally Responsible Real Estate Projects: Be part of the TribeTribu is a 100% Mexican company,.
Government of Yucatan paid “ghost companies” 150 million pesos to conduct health studiesThe Mexican news web portal “Animal.
What to do if you lose your passport in MexicoAs much as we try to.
Victory Cruise Lines launches all-inclusive cruise-land Yucatán programPresident’s Cruise to inaugurate Victory’s 2019.
Mercy Hospital marks 40th anniversary of Yucatan Heart ProgramDES MOINES – Des Moines is the.
Canadian company to invest 57 million USD in Yucatán Peninsula beach resortMONTREAL — Transat A.T. Inc. says it.
Expert warns of large tourist drop for Cancun in 2019“The number of foreign tourists arriving.
Mexican journalist gunned down in Chiapas (VIDEO)The public prosecutor’s office of Chiapas.
Mérida, recognized as one of the most important tourist spots in Southeast MexicoThe Municipal Tourism Directorate is currently.
Mérida Restaurant Week kicks off today!From September 24 to 30, Mérida.
Leave a Comment