Mexico economy on verge of collapse

Mexico, Mar 1 (Prensa Latina) Contrary to official opinion, Mexico s economy is nearing collapse, said Mario Di Costanzo, member of the work group of opposition leader Andres Manuel Lopez Obrador.

Mexican Finance Secretary Agustin Carstens boasted of the apparent strength of the local economy and independence from the US economic cycle.

Di Costanzo recalled that the exchange had this week its worst collapse in seven years by 5.8 percent.

The expert added that the famous stability that Carstens brags about is seen in stagnant production, millions of poor, underemployed and unemployed, and a destroyed domestic market and economy.

With the Felipe Calderon government, state and social activities and public safety have collapsed and there is soaring financial dependence on the US.

The national budget depends namely on oil exports, remittances from overseas and protection of international foreign capital that deteriorates income distribution.

Roberto Galvan, president of Vanguardia Investment Consulting firm, termed Carstens words biased, for no one depending on international financial and commercial circles is safe from a crisis.

On the other hand, several analysts have warned of the risks for the Mexican economy of a recession announced for year s end by US Federal Reserve ex Chairman Alan Greenspan.

A recession in the US would automatically sever fuel consumption and oil prices at the world market and reduce inflow of dollars from the US that is Mexico s top hard currency income source.

Source: plenglish.com