[Mexico Living Guide] President Calderon Unveils Mexico’s Economic Recovery Plan

[John & Rachel Pack, Mexico Living]

By Christa Thomas

Mexico Living Guide

Recession in the U.S., which buys 80 percent of Mexico’s exports, presents a risk to Mexico’s economy. President Calderon recently noted that Mexico faces a significant challenge this year as the worldwide economic crisis worsens, sapping demand for exports and threatening jobs.

In response to the economic crisis, President Calderon unveiled Mexico’s emergency measures, which are part of a 25-point economic recovery plan called The National Agreement to Promote Families’ Economies. The agreement, signed by governors, the legislative branch, social, business and workers' organizations as well as the President, is based on five key areas:

1. Supporting workers’ employment;

2. Supporting families’ economies;

3. Supporting competitiveness and small and medium-sized businesses;

4. Investment and infrastructure to promote competitiveness and employment; and

5. Encouraging actions to promote more transparent and efficient public spending.

“With these 25 measures, the federal government promises to defend household budgets and employment,” Calderon said, while pledging to inject billions of pesos into the Mexican economy.

The emergency measures include the following:

1. Infrastructure development. President Calderon has pledged to increase funds for the development of infrastructure. The National Infrastructure Program has an impressive schedule to build and modernize over 17,000 kilometers of highways and country roads, and to rebuild and repair bridges and other public-use facilities.

2. Job creation. 250,000 jobs will be created by the acceleration of several planned infrastructure projects such as road repairs, restoration of historic sites and building and repairing airports and sea ports.

3. Comprehensive cuts to energy prices. Mexico will freeze the price of gasoline this year and subsidize a 10 percent reduction in household gas prices. The plan will also lower electricity rates for businesses by up to 20 percent. Petroleos Mexicanos, the nationally owned oil industry, will receive an influx of funds to help it weather the economic storm.

4. Improved Social Security program. The government has pledged billions of pesos to help Mexicans who are unemployed or underemployed. Calderon vowed to improve the Social Security program for unemployed Mexicans, increasing from two months to six months the time they will receive medical and maternity coverage.

5. Subsidies. Calderon promised financial aid to struggling industries in a bid to save hundreds of thousands of jobs mostly in export industries that depend heavily upon the U.S. market. The federal government has pledged to make at least 20 percent of its purchases from small- and medium-size companies. He will also establish a fund to finance a “Made in Mexico” program.

President Calderon warned that Mexico would be experiencing a difficult year in terms of economic growth, investment and employment. However, he added that unlike “in the past, our economy today is much more solid and stable. And given the challenges, government will continue working tirelessly to offset the effects of the world financial crisis and overcome this situation as soon as possible.”

Sources: CNN, BBC, Bloomberg & AFP

Published by Mexico Living Guide - The Guide to the Good Life in Mexico.

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Posted By John & Rachel Pack, Mexico Living to Mexico Living Guide at 2/16/2009 03:02:00 PM

[Betsy Aksamit]

It is so good that Mexico is being proactive in these difficult ecomic
times. Ever since the new delegato took office here in San Felipe a
couple of years ago there has been a marked improvement in the
infrastructure right here in town. I have personally let the delegato
know how much this is appreciated. The latest improvement completed
that I am aware of was the ceremony held on February 9, 2009 to
commemorate turning on city water in the El Jido north of town. Now it
sounds like more funds will be available for even more improvements.
Anyone who travels from Mexicali to San Felipe or Ensenada to San
Felipe know all the work that has gone into improving the roads. I
always give a thumbs up to the road crews to try & let them know what
a great job they are doing in that small way.

On Feb 16, 3:02 pm, "John & Rachel Pack, Mexico Living"
<packmagazi...@gmail.com> wrote:
> By Christa ThomasMexico Living GuideRecession in the U.S., which buys

> 80 percent of Mexico’s exports, presents a risk to Mexico’s economy.
> President Calderon recently noted that Mexico faces a significant
> challenge this year as the worldwide economic crisis worsens, sapping

> demand for exports and threatening jobs.In response to the economic

> crisis, President Calderon unveiled Mexico’s emergency measures, which
> are part of a 25-point economic recovery plan called The National
> Agreement to Promote Families’ Economies. The agreement, signed by
> governors, the legislative branch, social, business and workers'
> organizations as well as the President, is based on five key areas:1.
> Supporting workers’ employment;2. Supporting families’ economies;3.
> Supporting competitiveness and small and medium-sized businesses;4.
> Investment and infrastructure to promote competitiveness and

> employment; and5. Encouraging actions to promote more transparent and

> efficient public spending.“With these 25 measures, the federal
> government promises to defend household budgets and employment,”
> Calderon said, while pledging to inject billions of pesos into the

> Mexican economy.The emergency measures include the following:1.

> Infrastructure development. President Calderon has pledged to increase
> funds for the development of infrastructure. The National
> Infrastructure Program has an impressive schedule to build and
> modernize over 17,000 kilometers of highways and country roads, and to

> rebuild and repair bridges and other public-use facilities.2. Job

> creation. 250,000 jobs will be created by the acceleration of several
> planned infrastructure projects such as road repairs, restoration of
> historic sites and building and repairing airports and sea ports.3.
> Comprehensive cuts to energy prices. Mexico will freeze the price of
> gasoline this year and subsidize a 10 percent reduction in household
> gas prices. The plan will also lower electricity rates for businesses
> by up to 20 percent. Petroleos Mexicanos, the nationally owned oil
> industry, will receive an influx of funds to help it weather the

> economic storm.4. Improved Social Security program. The government has

> pledged billions of pesos to help Mexicans who are unemployed or
> underemployed. Calderon vowed to improve the Social Security program
> for unemployed Mexicans, increasing from two months to six months the

> time they will receive medical and maternity coverage.5. Subsidies.

> Calderon promised financial aid to struggling industries in a bid to
> save hundreds of thousands of jobs mostly in export industries that
> depend heavily upon the U.S. market. The federal government has pledged
> to make at least 20 percent of its purchases from small- and
> medium-size companies. He will also establish a fund to finance a “Made

> in Mexico” program.President Calderon warned that Mexico would be

> experiencing a difficult year in terms of economic growth, investment
> and employment. However, he added that unlike “in the past, our economy
> today is much more solid and stable. And given the challenges,
> government will continue working tirelessly to offset the effects of
> the world financial crisis and overcome this situation as soon as

> possible.”Sources: CNN, BBC, Bloomberg & AFPPublished by Mexico Living