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17 Jul 2013
Flash: who's Spending in EM? - BBH
FXstreet.com (London) - Marc Chandler, Global Head of Currency Strategy at BBH Global Currency Strategy Team looks at EM’s new spending initiative.
He said that Mexico got the ball rolling at the start of the week by announcing plans for $316 bln in infrastructure spending between now and 2018, including investment from the private sector. “That’s 1/3 of Mexico’s GDP. The idea behind the initiative is to boost competitiveness and to support growth”. He said there are not that many countries in a position to conduct counter-cyclical fiscal policy at this stage in the game, but Mexico is well-placed, with the 2013 budget deficit expected to come in just above 2.0% of GDP this year.
He said that Mexico got the ball rolling at the start of the week by announcing plans for $316 bln in infrastructure spending between now and 2018, including investment from the private sector. “That’s 1/3 of Mexico’s GDP. The idea behind the initiative is to boost competitiveness and to support growth”. He said there are not that many countries in a position to conduct counter-cyclical fiscal policy at this stage in the game, but Mexico is well-placed, with the 2013 budget deficit expected to come in just above 2.0% of GDP this year.