Economic Jitters

The papers here are all leading with inflation stories: it's getting worse, though it's far from catastrophic. Thanks to a declining construction industry and a harsher posture toward illegal immigrants in the US, remittances payments are also down 2 percent, which is the first such drop in a decade. All this, combined with zero or very low growth in the United States, might lead one to worry about Mexico's economy, but it's still projected to grow by 2.75 percent in 2008. That's lower than the regional average and well below its potential, but it does indicate an increased economic durability compared with the volatility of years past.