Weekly Report - 23 August 2007 (ISSN 1741-7422)
TRACKING TRENDS
MEXICO | The economy. The finance ministry reported on 16 August that GDP growth in the second quarter was 2.8%, year-on-year. This brought growth for the first half of the year to 2.7%, year-on-year, well shy of the government's target of 3.5% growth for 2007. The big problem is manufacturing, which was up by just 0.5% on the second quarter of 2006. The most buoyant sectors in the economy are services (up 3.7%, year-on-year) and agriculture (up 3.8%).
The finance ministry pointed out that 24 of the 49 industries covered by the manufacturing output index registered growth, year-on-year. These include major industries such as the motor industry. The worry must be that the slowdown in the US economy will further diminish US demand for Mexican manufactured goods, such as cars, and depress Mexican manufacturing output further.
MEXICO | Aeroméxico. Alberto and Moisés Saba, (father and son, with separate business careers and companies) bid M$1.09bn (US$99m) for 100% of the national airline, Aeroméxico, which the government is privatising. The Sabas say that their bid is good until 18 September. The government has a controlling (60%) stake in Aeroméxico. Grupo Aeroméxico controls Aerovías de México and Aerolitoral as well as various ground service companies working at Mexican airports. At the end of 2005, the government sold the country's other main airline, Mexicana de Aviación to Grupo Posadas for US$166m.
MEXICO | Hydroelectric Project halted. A judge granted an injunction to peasant groups opposed to the construction of the huge hydro-electric dam, La Parota, in the southern state of Guerrero. The injunction was granted on 14 August in Acapulco, but was only announced on 22 August. The injunction challenges the environmental approval to the project granted by the federal environment industry; the Comisión Nacional de Agua and the Comisión Federal de Electricidad. The peasants successfully argued before the judge that the project infringed Articles 14 and 16 of the federal constitution which specify that no citizen should be deprived of property, possessions or rights without a court judgment. Astrid Puentes, the legal director of the Asociación Interamericana para la Defensa del Ambiente, said that the next target for the alliance between environmentalists and peasants is to stop the project completely. The dam for the project would flood 17,000 hectares and force 25,000 people to move.
The finance ministry pointed out that 24 of the 49 industries covered by the manufacturing output index registered growth, year-on-year. These include major industries such as the motor industry. The worry must be that the slowdown in the US economy will further diminish US demand for Mexican manufactured goods, such as cars, and depress Mexican manufacturing output further.
MEXICO | Aeroméxico. Alberto and Moisés Saba, (father and son, with separate business careers and companies) bid M$1.09bn (US$99m) for 100% of the national airline, Aeroméxico, which the government is privatising. The Sabas say that their bid is good until 18 September. The government has a controlling (60%) stake in Aeroméxico. Grupo Aeroméxico controls Aerovías de México and Aerolitoral as well as various ground service companies working at Mexican airports. At the end of 2005, the government sold the country's other main airline, Mexicana de Aviación to Grupo Posadas for US$166m.
MEXICO | Hydroelectric Project halted. A judge granted an injunction to peasant groups opposed to the construction of the huge hydro-electric dam, La Parota, in the southern state of Guerrero. The injunction was granted on 14 August in Acapulco, but was only announced on 22 August. The injunction challenges the environmental approval to the project granted by the federal environment industry; the Comisión Nacional de Agua and the Comisión Federal de Electricidad. The peasants successfully argued before the judge that the project infringed Articles 14 and 16 of the federal constitution which specify that no citizen should be deprived of property, possessions or rights without a court judgment. Astrid Puentes, the legal director of the Asociación Interamericana para la Defensa del Ambiente, said that the next target for the alliance between environmentalists and peasants is to stop the project completely. The dam for the project would flood 17,000 hectares and force 25,000 people to move.
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