Local financial sector to outperform regional peers in economic slowdown - Monex

Thursday, August 18, 2011

Mexico's financial sector is in a good position to face the US economy's slowdown, despite its proximity to the struggling economic superpower, analysts at local financial group Monex wrote in a report.

"Our country presents better financial conditions than other Latin American countries and emerging economies," Monex said. "Our economy demonstrates healthy public finances, higher internal consumption [than regional peers], controlled inflation and a strong financial sector, which in these times of volatility makes us a defensive market [for investors]."

Monex, which earns the bulk of its revenues on foreign exchange payments, has revised downward its forecasts for Mexico's stock market, which is now expected to lose 5.3% of its value this year. The company pointed out, however, that this would still make Mexico a regional outperformer.

Start your 15 day free trial now!


Already a subscriber? Please, login

So far this year, the local stock market has fallen 5.9%, compared to 47.8% for Argentina, 11.7% for Brazil and 6.0% in Chile.