Mexico's economy took quite a hit on top of a recession as swine flu panic swept through North America, but its central bank is taking a step towards recovery cutting interest rates (as expected) by 75 base points to 5.25 percent.
Tourism revenue (one of Mexico's largest sources of foreign currency) could see a drop of about 41 percent this year because of the effect of swine flu on travel reported Tourism Minister Rodolfo Elizondo. But pressure on the U.S. to lift travel warnings before the summer could bring some relief.
The U.S. Centers for Disease Control and Prevention already downgraded its recommendation to avoid travel to Mexico Friday to a "Travel Health Precaution."
Mexican airports are outperforming, especially Grupo Aeroportuario del Pacifico (PAC) and Grupo Aeroportuario del Sureste (ASR), two plays well-known by dedicated Latin American investors.
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