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Article: Mexico: Oil prices slow GDP growth
- Article from:
- PPI
- Article date:
- August 1, 1999
- Author:
CopyrightCopyright Miller Freeman Inc. Aug 1999. Provided by ProQuest LLC. (Hide copyright information)
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Mexico's positive economic performance in 1997 continued into the first quarter of 1998. But the Asian currency crisis and a further drop in oil prices started to take their toll on the Mexican economy. As a result, GDP growth reached just 4.8% in 1998, compared with 7% the year earlier. Inflation rose to 18.6% last year from 15.7% in 1997. Budget cuts and a restrictive monetary policy were implemented throughout 1998 and on into this year.
Imports increased by 14% to $125 billion last year, while exports grew just 6% to $117.5 billion, reflecting the impact of lower oil prices. Mexico's current account deficit doubled to $16 billion, or 4% of GDP. The deficit is still adequately financed ...