Desert Economy Struggling To Stay Afloat Essay

When the Statess economy fell into a recession in 2008, it took down mexico along with it. the States is by far the largest buyer of Mexican products, last year alone doing $400 billion in business. The economist article, Making The Desert Bloom, brings to light the condition that Mexicos economy is presently in, restricted by cartels, monopolies and its unfortunate situation with America.When stocks plummeted and jobs were lost in america, Mexicos economy as a whole fell by 6.1%, the northern state of Coahuila engenderting hit the worst with a drop of 12.3%. Until the recession, Mexico was on schedule to have a reasonable decade but with ain income emergence now at only 0.6% , some of the worst in the world, it doesnt look promising. Mexicos unemployment rate peaked at 6.4% in 2009 and is only slowly rangeting better.The foundation of Mexicos economy is found on its exports. With Americans share of Mexicos exports falling from 89% to 78% and expecting to get worse, mexico ha s a problem on their hands. At the beginning of the decade, Mexico claimed the largest Latin American economy but since has been over taken by brazil with a GDP grow to more then 2 times that of Mexicos. In 2010, the murder rate was 17 out of every 100,000 people, expected to possess a 1% drop in Mexicos annual growth rate. Foreign direct investment has fall from $30 billion to only if half that over the last 5 years. With so many problems bound Mexicos potential, the country needs to get everything in order to to invigorate itself from the current recession.Mexico has been hit by the steepest recession of any latin american country. A recession can be explained by a of import decline in activity across the economy effecting in industrial production, employment, income and trade. Between 2008 and 2009, 700,000 jobs were lost in Mexico. In certain parts, 4 in 10 business shut down.The head of economic planning in Mexicos fiancee ministry, Miguel Messmacher, has seen a major shif t in the counsel of exports out of his country. Sales to latin America and asia are growing in two focusings as fast as those to America. Mexicos largest export is the automotive industry, although its exports to America make up only 65%.Eduardo soils head of the industrys national association thinks this is a good sign because it always Mexico to raise markets in other countries, opening up more opportunities. His goal is to get it down to 50%. Others argue that Mexico can not become a commodity exporter. just because countries like china have a requirement for soy beans, doesnt mean that Mexico should start growing and export this product. They view the economic future still lies in Americas economy. They way out of the recession is to gain a bigger piece of Americas slowly growing economy.