Mexican slowdown may drive more north

Feb. 17, 2007 at 12:43AM

The Mexican economy slowed in the fourth quarter of 2006, and one result may be an increase in the number of Mexican immigrants heading for the United States.
Mexico's gross domestic product grew by 4.3 percent during the last three months of 2006, officials reported Friday. It was the third consecutive quarter of slower growth -- and a sharp decline from the 5.5 percent growth recorded in the first quarter of the year, the Los Angeles Times reported.
The slowdown was attributed to factors including sluggish manufacturing and a slowdown in exports to the United States -- Mexico's top export destination.
Eugenio Aleman, a Latin America economist with Wells Fargo in Minnesota, told the Times the situation poses a tough challenge for Mexican President Felipe Calderon, who campaigned on a platform of job creation and economic growth.
"When I took a look at some of the numbers I said, 'Uh-oh,'" Aleman said. "Things are not looking good."
For 2006 overall, Mexico's GDP grew 4.8 percent, posting its largest annual expansion since 2000. The government collected record tax revenues because of high oil prices, and job creation was strong.
However, inflation has been rising and oil production is slipping, the newspaper said.

http://www.washtimes.com/upi/20070217-124203-2962r.htm