Krugman: When Will Mexico Economy Miracle Appear? teleSUR
go to original March 31, 2015

Nobel Prize for Economics winner, Paul Krugman (Reuters)

U.S. academic Paul Krugman has hit out the Mexican economy, forecasting a gloomy outlook for the near future. In a speech to the Mexican National Chamber of Industry, the Nobel Prize for Economics winner warned that no financial “miracle” was coming to save the country.

“When will this Mexican miracle appear? The people are already tired of waiting. We’re not talking about a terrible economic performance but that was not what was expected. I doubt that a miracle will be produced,” Krugman told the conference.

According to the intellectual, Mexicans are hoping that Mexico becomes a country like South Korea, but “this will not happen” with the small growth of 2.1 percent that the Central American nation experienced at the end of 2014.

And although Mexico has suffered from external influences, like the plummet in oil prices and the devaluation of the peso to the dollar, Krugman explained that it has the tools to survive these setbacks.

“Mexico is much less vulnerable to the price of petrol compared to the past. It is now a country with a more diverse export sector, orientated more to manufacture than to a petro-economy,” he said, before acknowledging that “the main attraction of Mexico is that it is close to the United States.”

Krugman ultimately criticized the free market in Mexico.

Read the rest at teleSUR

We invite you to add your charity or supporting organizations' news stories and coming events to PVAngels so we can share them with the world. Do it now!