Mexico’s economy at risk of recession (Ceesp)

Private sector asks to immediately apply effective measures against the current economic deceleration that is taking place in Mexico.

“The Mexican economy is in risk of falling into a vicious circle of stagnation and even reaching recession”, warned the Center for Economic Studies of the Private Sector (Centro de Estudios Económicos del Sector Privado: Ceesp).

The agency warned of the possibility of reaching this scenario if effective actions are not taken in time to reverse the slowdown, and if the government does not stop sending out confusing signals, that are scaring away international investors, especially in the energy sector.

“If the outlook worsens, a recession with exchange rate instability and higher inflation is a possibility”, says the statement issued by Ceesp.

“The problem is that in the behavior of the industry and services consumption, and in the activity observed in the productive sectors, there is a “clear downward trend, and it can not be attributed to temporary factors”, the statement continued.

At the international level, a similar warning was launched at the General Assembly of the Bank for International Settlements (BIS), whose general director, Agustín Carstens, said that the world economy has experienced an evident slowdown in recent months.

“In addition to the monetary policy; fiscal policies, macroeconomic prudential measures and structural reforms will be necessary”, Agustín Carstens concluded.

The Yucatan Times Newsroom



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