Mexico's internal consumption to hit lows in 2010
As another confirmation of the long-standing idea that when America sneezes, Mexico catches pneumonia, the Mexican business association of Mexico State (AIEM) believes that Mexican spending on goods and services in 2010 shall fall between 3% and 20%.
Surely the Mexican authorities share a fair share of the blame, as they were much too slow to react to the greatest global recession in 50 years. But no worries... most of these high-flyers and bureaucrats are immune to the recession's devastating effects. For ordinary Mexicans, however, it's a different story.
Cuevas Dobarganes, VP of the Ecatepec region, recently commented that "if people aren't buying now, it's because they're out of work, earn less or have decided (as a precautionary measure) to spend less". In his view, this diminished spending shall severely affect the internal market.
"While businesses can expect lower sales, consumers shall be forced to pay higher prices, as establishments begin to charge more money to cover operational costs."
During 2009, the worst hit sectors included automotive, construction and furniture manufacture, which sustained losses up to 80%. In 2010, tourism-related businesses such as hotels, restaurants and entertainment venues shall be most affected.
The Mexican people once again must bear the brunt of its leaders' mistakes.
