| Mexico is
ready to confront a slow down in the U.S. economy in 2007, say
financial analysts from the world´s biggest investment banks.
Despite the
outcome of pending fiscal, labor and energy reforms, analysts from
JP Morgan and Merrill Lynch point to a huge internal demand in the
nation´s construction sector that will protect the economy from
the negative effects a U.S. downswing might have.
"The
close relation between U.S. and Mexican economic cycles seems to
have dwindled in recent years," says Felipe Illanes, a
specialist in emerging markets for Merrill Lynch. Illanes
forecasts that the economy will grow 3.2 percent in 2007 while his
counterparts at JP Morgan put the figure at 3.6 percent.
JP Morgan
also points out that improved efficiency in federal infrastructure
spending has led to higher domestic demand.
The
investment house says while an economic downturn in the United
States will leave the nation´s manufacturers vulnerable, internal
demand should keep the books in the black.
"In
Mexico, the construction, mining, electricity and water industries
are more dependent on domestic demand now because of a massive
expansion in the market," explained David Franco, a
specialist in U.S.-Mexico trade relations for JP Morgan.
Another
factor in Mexico´s growing economic independence is the nation´s
construction industry.
"Low
interest rates have spurred a huge surge in home ownership and
mortgage lending which has resulted in the construction industry
growing dramatically," said Illanes.
Meanwhile,
the U.S. government maintains an optimistic outlook despite the
unfavorable forecasts by financial experts. "We´re not
exactly sure where the economy is heading next year but we´d like
to keep a positive face on things," said Steve Norton of the
U.S. Commerce Department.
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