Free Newsletters - Space - Defense - Environment - Energy - Solar - Nuclear
..
. Earth Science News .




POLITICAL ECONOMY
Mexico risks ratings in slow fiscal reform
by Staff Writers
Mexico City (UPI) Nov 1, 2012


disclaimer: image is for illustration purposes only

Mexico is risking a further downgrade of its sovereign credit ratings by the world's ratings agencies because of delays in what critics see as urgently needed fiscal reforms.

Mexico's fiscal shortcomings have worried investors for a long time but the problem is under the spotlight again as President-elect Enrique Pena Nieto, 46, prepares to take office Dec. 1.

Pena Nieto has promised a rack of reforms, including more efficient taxation and poverty-reduction programs, but he is up against political foes as well a brutal, hugely resourced organized crime.

Pena Nieto's critics warn that his Institutional Revolutionary Party's return to power after 12 years signals a rise of conservatism and possible return to authoritarianism, accusations that are vigorously rebutted by his aides.

"It is a fact and it has been repeatedly pointed out by Enrique Pena Nieto that (fiscal reform) will be one of the reforms that is promoted at the start of his administration," head of Pena Nieto's transition team Luis Videgaray Caso said.

Independent analysts including rating agencies say Mexico needs an early implementation of wide-ranging fiscal reforms to make a better use of its oil revenues that currently feed a third of the federal budget, streamline taxation and remove other obstacles to economic growth.

The Fitch ratings agency in January praised Mexico's "disciplined macroeconomic policies, a relatively healthy banking sector, resilient external accounts, a modest external debt burden and the sovereign's manageable external amortization profile."

It said those strengths sufficiently counterbalance the structural weaknesses in Mexico's public finances and the country's modest growth prospects.

"While the near-term economic outlook of Mexico appears generally favorable aided by the expected rebound in the (United States) and some further recovery in domestic demand, sustaining higher growth in the medium-term is likely to require additional structural reforms," Fitch Head of Latin America Sovereigns Shelly Shetty said.

"The rising wave of drug-related violence appears to be dampening confidence, retail and commerce activities, possibly weighing on a more robust investment and economic outlook," added Shetty.

Pena Nieto has promised a hard line against organized crime. "The law is applied; it is never negotiated," his election campaign statement said.

He has also told Mexicans, "I propose changing fear for hope. I propose changing Mexico."

The rating agencies say reforms in Mexico's tax environment and the way the country manages its oil income will go some way toward reaching that objective.

Analysts have warned that any delay in comprehensive fiscal reforms, talked about since before the state elections last year and presidential elections this year, may cost Mexico its sovereign ratings.

.


Related Links
The Economy






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle




Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News





POLITICAL ECONOMY
Asia growth hopes lifted by manufacturing data
Beijing (AFP) Nov 1, 2012
Manufacturing in Asia strengthened in October, data showed Thursday, with China seeing growth in activity for the first time in three months, stoking hopes the region is emerging from a drawn-out slowdown. The figures come on top of other indicators tentatively pointing to an uplift from months of slumber caused by Europe's long-running debt crisis and a stuttering recovery in the United Sta ... read more


POLITICAL ECONOMY
After Sandy, frustrated drivers queue for fuel

Haiti, struck by megastorm Sandy, asks for aid

Obama vows to stand with superstorm Sandy victims

US storm damage could hit $50 billion

POLITICAL ECONOMY
Space Station's Orbit Raised to Avoid Space Junk

Zynga builds new version of social game 'CityVille'

SSBV Aerospace and Technology Group and SpaceMetric announce signing of MOU

UC Research Brings Us Step Closer to Rollable, Foldable e-Devices

POLITICAL ECONOMY
Navy Oceanographers Delve Deeper in Wave Data to Improve Forecasts

Pacific sharks disappearing into soup: study

Century-long trend of global ocean warming identified

Global precipitation variability decreased from 1940 to 2009

POLITICAL ECONOMY
Two Perfect Days for IceBridge

Polar bears seen taking refuge on icebergs

Biologists record increasing amounts of plastic litter in the Arctic deep sea

Opposite Behaviors? Arctic Sea Ice Shrinks, Antarctic Grows

POLITICAL ECONOMY
Desert farming forms bacterial communities that promote drought resistance

Survey: Israel heaviest user of pesticides

Scientists Find Aphid Resistance in Black Raspberry

Greater effort needed to move local, fresh foods beyond 'privileged' consumers

POLITICAL ECONOMY
For New York rats, a question of sink or swim

Tabletop fault model reveals why some quakes result in faster shaking

Ash over Alaska from 100-year-old eruption

Earthquake shakes buildings in Philippine capital

POLITICAL ECONOMY
Lesotho fears cash shortfall as food crisis deepens

Senegal foreign, interior ministers lose jobs in reshuffle

G.Bissau's alleged coup mastermind to face military court

Rwanda ex-army chief's refugee status questioned in S.Africa

POLITICAL ECONOMY
Village in Bulgaria said Europe's oldest

Genetics suggest global human expansion

'Digital eternity' beckons as death goes high-tech

Primates' brains make visual maps using triangular grids




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement