Mexican Economy 2011 Outlook

According to analysts expectations, emerging economies will experience slower growth during 2011. Positively, Mexico should maintain its growth pace, leveraging on the strong commodity export sector and a relatively competitive manufacturing sector, where Mexico’s peso and Mexican assets continue to appear attractive. In addition, while export growth was the main driver of the economy last year, domestic demand is expected to play an equally important role this year. After ending 2010 at 4.4 percent, Ernesto Cordero, Mexico’s Finance Minister, said he sees consumer price inflation of 2 percent to 4 percent this year. Moreover, the central bank kept its benchmark lending rate at 4.50 percent for a 19th straight meeting on May 11, 2011, in view of a contained inflation and favorably supporting liquidity in financial market.

Mexico is a country that is clearly on the road to a continuing economic recovery after the difficult years it has had. After the crisis of October 2008, which resulted in economic losses during the 2009 recession, 2010 was a year of adjustments, and it seems 2011 will be a year of strong economic recovery for the country.