Moody’s high­lights Mex­ico’s ’flaws’

China Daily (Hong Kong) - - BUSINESS -

Mex­ico’s econ­omy has struc­tural flaws that won’t be re­solved with the up­com­ing rene­go­ti­a­tion of the North American Free Trade Agree­ment, credit rat­ing agency Moody’s said on Wed­nes­day. Mex­ico has for years re­lied on its poorly paid work­force to com­pete with other economies, and that is part of what is hold­ing the coun­try back, Moody’s said in a re­port. When Mex­ico, the United States and Canada signed NAFTA and put it into ef­fect in 1994, the trade deal was ex­pected to help strengthen the Latin American coun­try, “but Mex­ico has not at­tained the stel­lar growth rates that were an­tic­i­pated from lib­er­al­iz­ing its econ­omy”. What’s more, “wage and pro­duc­tiv­ity gaps with the US have widened rather than shrunk”, the agency said in a new re­port.

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