Fox and stability
|Fox: his pro-business party has
brought unprecedented economic
stability to Mexico
Mexico's president Vicente Fox knows the value of stability. Since 2000, his pro-business party, which ended 71 years of one-party rule by the National Revolutionary Party (PRI), has brought unprecedented economic stability to Mexico, Latin America's second-largest economy and one of the region's few investment-grade credits.
But that stability has not brought the red-hot economic growth many expected and more than midway through Fox's term, analysts, opposition politicians and investors wonder if Mexico is on the path to becoming a fully fledged investment-grade credit, leaving behind its emerging market status.
All of Fox's reforms – energy, labour market, judicial and telecommunication – have been repeatedly blocked by a hostile congress. Analysts say there is little chance of any significant restructuring being passed before a new president is elected in 2006.
But such urgent reforms are seen as essential for Mexico's growth and both the IMF and the OECD want change. The IMF estimates structural reform could lift annual economic growth higher than 6%, compared with the 4% forecast for 2004 and the listless 1.3%