1996-10-17 Local Press - Industry Imports More than it Exports
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Industry Imports More than it Exports
Leaders of the National Association of Importers and Exporters or the Mexican Republic (ANIERM) of the National Council of Foreign Trade (Conacex) warned of a renewed risk of a severe trade deficit, now that imports are rapidly increasing and exports can't keep up. The two noted that after 2 years and 9 months of NAFTA, 57% of manufacturing industries in Mexico import more than they export. In addition, manufacturing sales continue to be concentrated in the same sectors and businesses as before NAFTA took effect. (La Jornada, 12 October).
Inflation Surpasses Official Estimates
During the first nine months of 1996, inflation reached 20.39%. This means that the official estimate of 20.5% for all of 1996 will be significantly surpassed, since during the last quarter of the year there is always more pressure because of increased economic activity and end of year bonuses. However, inflation has been reduced by about half since its rate of 40.73% registered during the first nine months of 1995. (La Jornada, 10 October).
1997 Budget: Continued Austerity
The Secretariat of Finance (SHCP) announced that it will continue its austerity program in 1997, but that the projected federal budget will surpass 400 billion pesos (about $53 billion). SHCP said that spending in 1997 will prioritize social well-being, basic infrastructure, combating extreme poverty, education, health and "restructuring" subsidy programs, while cutting back on administrative costs. Of the total, 215 billion is expected to be channeled to social development; 95 billion for education; 82 billion for health and social security; 2 billion for labor; 18 billion for regional and urban development; and 9 billion for social and nutrition programs. (El Financiero, 13 October). (Ed. note; critics argue that the manner in which The government calculates its expenditures tends to exaggerate social spending).