Puerto Vallarta and the Economy
We do keep an eye on the economy here in Puerto Vallarta. Mexican companies, the national debt and market have all suffered, more than any other country, since the November 2016 election in the United States.
Trade between Mexico and the USA totaled $480 billion in 2016 but took a harsh blow in the past few months. Funds that have been transferred from all the Mexican workers north of the border has dwindled. It has been a long time that Mexico has felt such animosity from the north, not since then President James Polk declared war on Mexico, knowing how week the country was following a long and financially grueling conflict with Spain for independence. Polk won that war and a huge chunk of Mexico became US territory, including what are today California, Texas, New Mexico, Nevada, Arizona and parts of Wyoming and Colorado. In the current political climate, the latest US government wants to build a wall across that border, shutting the two countries off from one another even more. Mexicans have been incensed by this hostility and are not unaware of how it has affected their financial systems. In 2015, nearly one third of money sent to Mexico by Mexicans working in the US was from the state of California; over 14% came from Texas. To begin to argue land rights and immigration law is futile, but it is an observation that points to a major contribution of Mexican economy and how this is compounding the problem.
We in Puerto Vallarta have not allowed this downturn to have much of an impact and Mexicans are pulling themselves up by their bootstraps. Before the new administration in Washington DC began its hysterics, threats and “alternative facts,” Mexican businesses had advanced at a more rapid pace than any rising market since 1995.
There is a bright light on the horizon for Mexico, despite recent bad news. Markets are expecting a reversal, which it bases on the measure of future price swings. There is reason to be optimistic, very optimistic. In what traders refer to as a “golden cross,” in economic recovery; there is every indication of the peso beginning to rise. Much of
these expectations have to do with the 45th president of the United States inability to find agreement in regards to delivering on his intimidating threats. Without Congressional support, these ideas of a raving maniac fall flat and so far, Nafta stays in place and no bricks have been delivered to build his so-called wall.
Bloomberg predicts Mexico will be a leader in 2019 and here in Puerto Vallarta, we are more inclined to listen to wisdom with facts and logic.
Que es cómo es.
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