Mexico could face a protracted economic downturn in 2012 if the USA continues its economic slowdown, with the world’s largest economy having experienced a ceiling-debt crisis in 2011. Mexico is reliant on the USA for its exports, and consumers and businesses could feel the pinch should demand in the North American country fall. However, Mexico, as the second-largest economy in Latin America, continues to hold a strong consumer market, with opportunities for investors.
The Mexican economy is closely interlinked with the USA, sending 80.0% of its total exports to the USA in 2010. Negative economic shifts in the USA can thus impact Mexican businesses and consumers, reducing exports, investments and remittances inflows, as well as impacting labour markets.
The US debt-ceiling crisis and projected marginal economic expansion in 2011 point to a continued economic slowdown in the country in 2012. However, although Mexico stands to be affected, its increasingly diversified exports, large domestic consumer market and expanding economy mean the country is somewhat protected from external shocks. Mexican annual real GDP growth stood at 5.4% in 2010.
IPO Market Performance in the GCC Region. Global retailing is still struggling from a lack of global confidence, states Jon Wright, head of global retailing research at Euromonitor International. However, given the economic slowdown, tax increases and consumer concern over unemployment, the consumer spending exceeded expectations towards the end of 2010 and into 2011. The global retailing industry was driven by Latin America and the Middle East and Africa, both of which saw 4% sales growth in constant terms. Watch the video below
According to a survey conducted by the Kaiser Family Foundation in 2009, young people aged between eight and 18 years in the USA spend an average of almost 1.5 hours using the Internet every day and nearly 1.25 hours playing video games. Top online activities included social networking (22 minutes a day on average), playing games (17 minutes), and viewing videos (15 minutes). 74% had a profile on a social networking site.
The survey also identified a significant increase in the ownership of portable gadgets among those aged between eight and 18 years between 2004 and 2009, from 39% to 66% for mobile phones, and from 18% to 76% for MP3 players. The survey also found that media use increases substantially once children enter the 11-14 year-old age group. The chart below shows the Daily Media Use among the Population aged 8-18 in the USA: 2009
The chart below depicts the Value Global Sales of Traditional Toys and Games and Video Games Hardware and Software: 2005-2010