Adjusting to a Slower U.S. Economy A sudden rise in unemployment, declining investment activity and a downward trend in leading indicators indicate that the slump in the U.S. economy is spilling over to Mexico at a quicker pace than expected by most analysts. If the steep drop in inflation experienced in February, is sustained the Central Bank may gain manoeuvring room to bolster the economy by easing its monetary policy. Archive Fourth quarter growth lower than expected. The fourth quarter reading was significantly below market expectations, as the speed at which lower U.S. growth spilled over to Mexico caught many analysts by surprise.
Services lead growth.
Record growth in 2000. The record performance was propelled by the strong U.S. economy, which stimulated strong demand for manufactured goods in Mexico. Additionally, high oil prices generated extra-government revenue to boost spending. Finally, private consumption grew strongly over 1999, adding further demand from the domestic side. U.S. slump spilling over.