While the rest of Latin America powered through the economic crisis, Mexico felt the pain of its northern neighbor. But Mexico’s economy is now firmly back on track, according to Ignacio Deschamps, CEO of BBA Bancomer and chairman of the Mexican Banking Association.
“The economy is recovering and that recovery is quite fast,” he said Tuesday in a presentation organized by GWSB’s Center for Latin American Issues (CLAI). “Economic prospects are good for the next few years.”
As Mexico’s economy expands, U.S. exports to Mexico are projected to grow. Mexico is currently the United States’ No. 3 trading partner after China and Canada.
During his remarks, Deschamps presented economic indicators showing the recovery in Mexico, which posted a 6 percent drop in GDP as recently as 2009. In 2010, the economy expanded 5.5 percent.
“GDP growth of about 4 percent is expected for the next few years,” Deschamps said, adding that the long-term inflation rate will be about 3.5 percent and interest rates will rise in 2011.
Deschamps also noted that, unlike Europe and the United States, the banking system was one of the drivers of economic recovery.
“The banks were not part of the problem but part of the solution,” he said. “The banking system is strong and well capitalized. Mexican banks have remained robust and have not required public stimulus.”
Deschamps, who formerly worked at the Inter-American Development Bank, earned a master of engineering administration degree at GW.
Posted by gwsb on April 7, 2011 | Filed under: GWSB News.