The investors in the Mexican markets who were on the pace of faster growth this year are reviving now that their fortune may get disappeared soon. The International Monetary Fund has signaled this Thursday regarding the resurgence. It has mentioned that there will be no resurgence is there in the cutting or offing the forecast it gives for Latin America’s second largest economy and this is the third time in this year. The lender has told that the faltering expansion of the US will mean the Mexico’s GDP that will rise about 2.1 percent in the year 2015, which is down from the 3.4 percent in the previous projection.
The deterioration threatens the bond holders
The deteriorating outlook of the market actually threatens the bond holders in the market that it may even more worse there situation. They are already smarting out from the losses as the Mexican market is also falling with the short lofty growth expectations which were fueled by the historic changes in the laws of energy. The local currency of the nation has slumped around 4.5 percent in terms of dollars this year and there was a 0.2 percent average gain in the market that is emerging now.
Alberto Ramos, who is a chief Latin America economist and also a part of Goldman Sachs Group Inc has told that Mexico has really disappointed a lot in the past two and a half years. He told this through telephone to the reporters from the city of New York. He has told that the experts in the market have become too optimistic in the case of mexico and have started expecting something more than what the Mexican market can actually deliver. He has also mentioned that they were too excited about the reforms of the nation. mexico has passed legislations in the year 2013 to give away all the oil fields to the private hands. This happened for the first time after 1938.
Highly affected areas in crisis
The 49 percent crumple in the price of crude has helped the undermine that was pushing or actually forcing the government to cut down the expenditures in the early this year. The weaker growth of the US, which is actually not expected has also added more woes to the Mexican market scenario. The biggest economy in the world is the destination for about 80% of the total exports from mexico.
Gian Maria Milesi-Ferretti who is the deputy director of the IMF’s research department has told the reporters in Washington this Thursday that mexico has become highly affected due to what has happened in the north of the border. And she has also mentioned that the Mexican economy is a very open economy. The scenario is also not good for the marketers to go for an investment now and hence the experts says that the Mexican market will remain the same for few more months. There are chances for the market to get recovered after few months, said an experienced senior marketer.
The deterioration threatens the bond holders
The deteriorating outlook of the market actually threatens the bond holders in the market that it may even more worse there situation. They are already smarting out from the losses as the Mexican market is also falling with the short lofty growth expectations which were fueled by the historic changes in the laws of energy. The local currency of the nation has slumped around 4.5 percent in terms of dollars this year and there was a 0.2 percent average gain in the market that is emerging now.
Alberto Ramos, who is a chief Latin America economist and also a part of Goldman Sachs Group Inc has told that Mexico has really disappointed a lot in the past two and a half years. He told this through telephone to the reporters from the city of New York. He has told that the experts in the market have become too optimistic in the case of mexico and have started expecting something more than what the Mexican market can actually deliver. He has also mentioned that they were too excited about the reforms of the nation. mexico has passed legislations in the year 2013 to give away all the oil fields to the private hands. This happened for the first time after 1938.
Highly affected areas in crisis
The 49 percent crumple in the price of crude has helped the undermine that was pushing or actually forcing the government to cut down the expenditures in the early this year. The weaker growth of the US, which is actually not expected has also added more woes to the Mexican market scenario. The biggest economy in the world is the destination for about 80% of the total exports from mexico.
Gian Maria Milesi-Ferretti who is the deputy director of the IMF’s research department has told the reporters in Washington this Thursday that mexico has become highly affected due to what has happened in the north of the border. And she has also mentioned that the Mexican economy is a very open economy. The scenario is also not good for the marketers to go for an investment now and hence the experts says that the Mexican market will remain the same for few more months. There are chances for the market to get recovered after few months, said an experienced senior marketer.