Mexico - Current economic position and prospects

FILE COPY Report No. 547-ME Current Economic Position and Prospects of Mexico September 27, 1974 Latin America and the Caribbean Regional Office Not for Public Use Document of the International Bank for Reconstruction and Development International Development Association This report was prepared for official use only by the Bank Group. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report.  Currency Equivalents Mex$ 1.0 US$ 0.8 Mex$12.50 US$ 1.0 Mex$ 1 million = US$ 80, 000 Fiscal Year January 1 - December 31  This Report is based on the findings of an economic mission which visited Mexico in March/April 197h. The mission consisted of Ian Scott (Mission Chief), Thomas Hutcheson (General Economist) and Peter Scherer (Investment Analyst).   CURRENT ECONOMIC POSITION AND PROSPECTS OF MEXICO Table of Contents Page ND. COUNTRY DATA MAP 0 oo00o 0 0 0 090 a o*0 *ooo0 00 *00 *000Goa 0*0.00*0 .oo 0 000 10415 SUMMARY AND CONCLUSIONS i.. co..... 0* 0000 **00000 *.o i - i1ii I. The Context of Recent Economic Developments 1 II. The Events and Trends of 1973 and their Antecedents 3 0.0.................. ............. 3 A. The Real Economy ... *eo 000* C *.* 00 3 B. Monetary and Fiscal Trends and Policies C. Wages and Incomes *.... 000* .. 00 .00000000 **0 15 D. The Balance of Payments ............ ..oO..0 18 E. Conclusions .. *o 00.*0.0.00000.*.*0.*0000.*029 III. The Year in Progress - Prospects for 1974 .oo. 29 A. Public Finance, Monetary Policy and Prices . 31 B. The Balance of Payments *. *.Qo. Co.OO.ooo.* 39 C. Conclusions .*.000000000..0..oQ00000.o .00000 43 IV. Beyond Stabilization - 1975 and Thereafter 44 A. Introduction 4.4..o . .... . 1. B. Monetary and Fiscal Policies (,.o o..o..*.Co. * 47 C. The Balance of Payments O.00.0*00000. 52 D. Conclusions e - 000