Essay on Will Mexico 's Economy Be Able For Recover?

1456 Words Nov 12th, 2016 6 Pages
After several months of uncertainty, the Mexican Peso still remains under heavy pressure. The question is, will Mexico’s economy be able to recover? Unfortunately, the Mexican currency remains far away from recovery after Donald Trump became the next United States president. Depicted in the graph below, it is evident that over the past few months as Trump gained more support the peso was negatively affected and depreciated as his poll numbers improved. The peso has shown a high negative correlation with a potential Republic win (Cota). With Donald Trumps’ victory we have seen the negative correlation in full effect. A 13% fall in one trading day resulted from the election, the U.S. dollars to pesos was 18.3 on November 8th and fell to 20.7 dollars to pesos by noon on November 9th (Jain). Donald Trump is seen as a major threat to Mexico. He has threatened to slap a 35% tariff on goods made by U.S. companies in Mexico and sold in the United States. This could have drastic impacts on Mexico, as exports make up one third of their economy and almost all of their exports go to America (Gillespie). The people in Mexico have also looked towards their own President as a reason for the decline in the economy. Mexico is run by a federal republic under a centralized government, and a president is elected every 6 years, so the next election will not be until 2018. However, the people in Mexico are already discussing the next presidential election, as they are very disappointed in…

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