Mexico Economic Growth/IMF

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Mexico economically has long moved in the shadow of the United States. It might surprise some tough that Mexic, rich in resources and with an industrious population, has been experiencing steady growth. While this last recession again reflected that Mexico is still affected by US economic health, increasingly the country is charting its own course with an ever growing appetite for investments and capital. The IMF has recently stepped in to meet such need by raising its flexible credit over 50% to $73 billion.
Although Mexico is still not one of the so-called "BRICKs" or global economic tigers, it has the potential, even as it battles the drug lords now.

Transcripts / Production notes / Scripts

Dominique Strauss-Kahn, Managing Director, International Monetary Fund (IMF):
"We in the IMF, with Mexico are in the process of renewing your flexible credit line, which may seem very technical to many but is in fact very important. What's the idea? The idea is that in the new world we are entering in, accumulation of international reserves may be a strategy for some, but some other countries may prefer to use this money for their own development.”

Dominique Strauss-Kahn, Managing Director, International Monetary Fund (IMF):
“But this fight is necessary for your countries and for the youth in these countries to create jobs for next year and the year after next year. You have to have more and more, a larger part of your economy going from informal to formal. You have to make it easier in different sectors- transport, telecommunications, energy, to have easier access, more competition."

STORYLINE:

The International Monetary Fund welcomed Mexico’s request on Tuesday (14 Dec) to expand its Flexible Credit Line from US $47 billion to US $73 billion. Mexico’s President Felipe Calderon and IMF Managing Director Dominique Strauss-Kahn announced the request in a joint press conference today in Mexico City.

"We in the IMF, with Mexico are in the process of renewing your Flexible Credit Line, which may seem very technical to many but is in fact very important. What's the idea? The idea is that in the new world we are entering in, accumulation of international reserves may be a strategy for some, but some other countries may prefer to use this money for their own development," Strauss-Kahn said.

The IMF introduced the Flexible Credit Line in 2009 for countries with a good track record of sound economic policies. Mexico was the first country to request the program in April, 2009. Colombia and Poland also have taken out Flexible Credit Lines with the IMF. None of the three have drawn on the FCL, but have instead used it as an insurance policy against future financial shocks.

Strauss-Kahn said that the global financial crisis will not be over until unemployment begins to dip. He said it’s important to lay a foundation for future growth despite political opposition to change.

“But this fight is necessary for your countries and for the youth in these countries to create jobs for next year and the year after next year. You have to have more and more, a larger part of your economy going from informal to formal. You have to make it easier in different sectors- transport, telecommunications, energy, to have easier access, more competition," Strauss-Kahn said.

Strauss-Kahn said the IMF Executive Board would soon

Tags

• Mexici
• IMF
• economic development
• Calderon

Directors:

• Muhamed Sacirbey, UNTV

Producers:

• Susan Sacirbey