Increasing Signs of Recovery amidst Government-Business Disconnect

MEXICO - Report 01 Jul 2014 by Mauricio González, Guillermo Valdes, Esteban Manteca and Ernesto Cervera

Executive Summary Economic news published this past month was decidedly mixed and in a number of cases proved surprising. One of the most encouraging pieces of evidence was the monthly GDP proxy for April, which revealed, after adjusting for seasonal factors and calendar effects, an unexpected sequential 1.2% rise in activity alongside a 2.9% increase compared to the same month of last year. The later result was the most positive one Mexico had experienced in 16 months. We can expect more of this same sort of restrained growth going forward judging by the leading index of economic activity,...

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