Moody’s Investors Service (Moody’s) said México is the only country whose growth will exceed its historical average, even if it means a little “encouragement” given its tepid growth over the last decade.
In a study of the middle class in Latin America Moody’s said the long-term prospects for the México’s middle class are still encouraging, since the recent economic reforms will improve competitiveness, which will lead to a faster growth benefiting them in the long run.
It also noted that more government spending, especially on the country’s infrastructure, and an acceleration of the economy of the United States will boost demand and lead to faster job creation and higher wage growth in México.
The international rating agency said that Latin America as a whole is likely to see a slowdown in the growth of its middle class, which has seen a steady upward trend in the last decade, and which will particularly affect certain industries. Among the affected industries will be retail, auto manufacturers, construction companies, airlines and sellers of high-priced items.
Gersan Zurita, co-author of the report, said, “Economic growth in Latin America is slowing, with growth much lower than expected during the first half of 2014, a fact that negatively affects both consumption and investment.”
Zurita added the economic outlook is a bit more optimistic for México, Colombia and Peru, where the main growth driver will be government spending.
(from El Sol de Mazatlán)
No comments:
Post a Comment