The recession will “continue to significantly rising inflationary pressures in the world and Mexico, which is a growing cause for concern. ” Guillermo Ortiz Martinez, governor of the Bank of Mexico said a few days later: “There are still inflationary pressures in the pipeline, and that could continue up the prices of processed foods, however, that since there is a stability in the price of grain.” Inflation worries Mexico and a possible economic slowdown … But there is another issue which also worries and is related to energy reform. Read more here: Jim Rogers. PEMEX reform is at the center of much debate in Mexico. State oil is of great importance for the Mexican economy, given the magnitude of income generated and are intended for public spending in sensitive areas like education, security and social policies.
The first quarter of this year, the contribution of the national treasury Mexican PEMEX represented 45% of total revenue. The truth is that beyond the increase in the contribution to the tax that makes Pemex income sources of oil are in jeopardy. Oil production is falling and proven reserves have declined significantly in recent years. PEMEX Production peaked in 2004 and since then began to decline steadily. Oil production fell 13% in 2006. In 2007 oil production fell 5.3%, and in the first quarter of this year, oil production in Mexico registered a fall of 7.8% in annual terms. But more worrying is that between 2000 and 2007 proven oil reserves in Mexico fell by 54% (this according to the Statistical Yearbook PEMEX).
And while the price of oil continues to break barriers (and exceeded that of U.S. $ 130 a barrel), Mexico is losing a great opportunity. Lack of investment by poor Mexican government policy behind this result. But it is still time to reverse history. Although it takes large amounts of capital to invest, which should resolve the Mexican people is how they seek to obtain the volume of investment. Mexico is not the only case that exists in the region countries that are missing a historic moment for growth. Argentina and so is the same I’m going to talk tomorrow, discussing the main conclusions of the seminar which takes place today at the Sheraton in Buenos Aires, where leading economists debate the prospects for Argentina’s economy.