Calderón takes office

Marketplace Staff Dec 1, 2006
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Calderón takes office

Marketplace Staff Dec 1, 2006
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MARK AUSTIN THOMAS: Mexico gets a new President today. Felipe Calderón takes the reigns of one of Latin America’s most powerful economies. But as Franc Contreras reports from Mexico City the country’s economic outlook is mixed.


FRANC CONTRERAS: Once the inaugural parties are over, Felipe Calderón will be faced with a slowing Mexican economy. The U.S. is by far Mexico’s biggest trading partner and a sluggish U.S. economy is likely to put a chill on Mexican exports and industrial output.

A drop in world oil prices is also expected to hurt. Mexico counts on oil revenues for the lion’s share of its budget.

During the campaign Calderón promised to lift Mexico’s poor from poverty. But less oil revenue means less money for such programs.

The news isn’t all bad for Calderón. Mexico is still in the midst of a housing boom and analysts expect the economy will benefit from the more than $20 billion in remittances that Mexican workers in the U.S. are expected to send home to their families.

In Mexico City, I’m Franc Contreras for Marketplace.

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