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A mid-term vote for Pena

Monday, June 15, 2015

Mexico’s economy may be weak.

The public may have a poor opinion of politicians.

Still, President Enrique Peña will have an opportunity to promote his agenda, including investment in Mexico’s oil-gas industry, along with increased exports, following a good showing by his party in last week’s mid-term elections.

In terms of the economy, growth in national output of 1% in 2014 may have been weak.

But many countries had zero growth or even showed a decline in output, in what was a slow year for most of the world.

Peña meanwhile expects oil-gas investment in Mexico, which last year allowed foreign companies to work in the hydrocarbon sector.

State-owned Pemex previously had a monopoly in oil-gas production.

Mexican exports, including motor vehicles, should for their part be competitive, following a drop of more than 20% in the value of peso against the dollar since last year.

Chrysler, Ford, General Motors, Honda, Mazda, Nissan, Toyota and Volkswagen all have Mexican plants.

As for politics, thousands of voters spoiled their ballots, as a protest against what they perceived as widespread corruption and inefficiency in government.

Still, Peña has a chance during the next three years to push his agenda, following elections, which are likely to give his Institutional Revolutionary Party effective control over both houses of Congress.

Support for the PRI was similar to that of national elections held in 2012, while every other major party did worse.