South America/Latin America/Mexico..they're all gonna crumble and crash! Brazill is likely next..and the dominos will fall fast after that. " Pemex-Peso-Dollar Crisis Takes its Toll in Mexico! For now, World Economics’ data are a statistical outlier. As the Financial Times points out, in March the Bank of Mexico foresaw solid growth of between 2% and 3% this year while the IMF forecast 2.4% growth in its April global economic outlook. In the same month, a panel of 22 banks and other organisations polled by data analysts Consensus Economics found a median gross domestic product growth forecast of 2.4% per cent for 2016.None of this should be much of a surprise given how dependent Mexico’s economy is on the manufacturing exports it sends to the US, whose economy is beginning to show signs of strain.One exception is Mexico. Or was! According to the economic data forecaster World Economics, “recession looms” for Latin America’s second largest economy. World Economics’ Sales Managers’ Index (SMI) for Mexico was just 47.3 in May. Below 50 means contraction. And it has been below 50 since February. All five sub-components — confidence, market growth, sales, prices, and staffing — are now below 50.With Brazil going through a period of extreme political and economic turmoil, Venezuela taking the art of basket-case economics to a whole new level, and Argentina’s economy grinding to a stagflationary halt, Latin America — in particular its Southern Cone — is not having the best of times.By Don Quijones, Spain & Mexico, editor at WOLF STREET.No one is immune to the crippling effects of a crumbling currency.Share on FacebookTweet about this on TwitterShare on LinkedInShare on Google+Share on RedditPrint this pageEmail this to someoneby Don Quijones • May 23, 2016 http://wolfstreet.com/2016/05/23/pemex-peso-dollar-crisis-in-mexico/
South America/Latin America/Mexico..they're all gonna crumble and crash! Brazill is likely next..and the dominos will fall fast after that.
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Pemex-Peso-Dollar Crisis Takes its Toll in Mexico! For now, World Economics’ data are a statistical outlier. As the Financial Times points out, in March the Bank of Mexico foresaw solid growth of between 2% and 3% this year while the IMF forecast 2.4% growth in its April global economic outlook. In the same month, a panel of 22 banks and other organisations polled by data analysts Consensus Economics found a median gross domestic product growth forecast of 2.4% per cent for 2016.None of this should be much of a surprise given how dependent Mexico’s economy is on the manufacturing exports it sends to the US, whose economy is beginning to show signs of strain.One exception is Mexico. Or was! According to the economic data forecaster World Economics, “recession looms” for Latin America’s second largest economy. World Economics’ Sales Managers’ Index (SMI) for Mexico was just 47.3 in May. Below 50 means contraction. And it has been below 50 since February. All five sub-components — confidence, market growth, sales, prices, and staffing — are now below 50.With Brazil going through a period of extreme political and economic turmoil, Venezuela taking the art of basket-case economics to a whole new level, and Argentina’s economy grinding to a stagflationary halt, Latin America — in particular its Southern Cone — is not having the best of times.By Don Quijones, Spain & Mexico, editor at WOLF STREET.No one is immune to the crippling effects of a crumbling currency.Share on FacebookTweet about this on TwitterShare on LinkedInShare on Google+Share on RedditPrint this pageEmail this to someoneby Don Quijones • May 23, 2016 http://wolfstreet.com/2016/05/23/pemex-peso-dollar-crisis-in-mexico/