Bank Of Mexico Chief Sees Growth in Mexico

With the necessary structural changes to encourage investment and development in key sectors, Mexico’s economy has the potential to grow by 6 percent annually, according to Agustin Carstens, governor of the Bank of Mexico.However, given recent international complications like the European debt crisis and weak economic growth in the United States, Carstens recently predicted Mexico will see a “relatively high” economic growth rate of 3.5 percent for the next several years.“We expect only a slight boost from the world economy,” Carstens told a meeting at Mexico’s Ministry of Foreign Affairs. While he warned that Mexico will do better than many of its international counterparts, 3.5 percent growth is not enough to generate the jobs Mexico needs.According to Julio Hernandez, U.S. Grains Council director in Mexico, two big questions right now are the extent of growth Mexico’s economy will actually see and the effect this will have on Mexico’s demand for U.S. grains. “We want to continue to see steady funding in capital and labor to ensure Mexico’s infrastructure systems remains as strong and efficient as possible,” Hernandez commented.
Based on USDA’s long-term agricultural projections released this week, Mexico’s corn imports will grow to 15 million metric tons (590 million bushels) in 2021, the second biggest growth market behind China.