MEXICO'S ECONOMY RECOVERING
According to economic reports in late August, Mexico is overcoming the worst recession
to hit the country in 50 years. The news is based upon figures showing a record 7.2
percent rate of growth in the second quarter of 1996 compared to the same period
of 1995. The 1995 recession, the worst downturn since the 1930s, put about 1 million
people out of work, cut the economy by 6.2 percent and forced Mexico to turn to the
United States for a $13.5 billion emergency loan.
In related news, the U.S. firm, Merrill Lynch, estimated that Mexico's rate of inflation
for the month of July dropped to 1.43 percent, the lowest in 1996. Along with increases
in wages and job openings, this change reflects greater economic productivity in
Mexico. They predicted that the Republic's inflation rate will drop even more in
August, to an estimated 1.25 percent.
Sources: Diario de Juarez, El
Paso Times
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