1996-11-20 Local Press - ECONOMY
Article Index
ECONOMY
Private Sector Considers Government Forecasts "Very Optimistic"
Spokespeople for private business associations in Mexico said that the government's forecast of a .5% public deficit and 15% inflation for 1997 are "very optimistic". They argued that the government's recent about faces (both on the issue of privatizing petrochemicals and on electoral reform) will slow national and foreign investment, making it very difficult to achieve the government's economic goals for 1997. Hector Larios Santillan, the President of the Business Coordinating Council (CCF) said that the goal of increasing tax revenues by 10% in 1997 does not correspond with overall economic forecasts for a slow economic recovery in 1997, He said that, in the best of cases, GDP growth will be 4.2% in 1997 and inflation 17%. (El Financiero. 19 November).
Monopolies on the Rise
During the past year, monopolistic practices in Mexico grew 56.3%. according to the Federal Competition Commission (CFC). Among the principal cases are American Express and Visa, as well as the alliance between Medom and Tolevisa. The Commission also noted that, as a result of the globalization process. 16 national firms have become multinational corporations. El Financiero, 19 November)