Table: Mexico's Economic Dilemma
The government is trying to create an export platform while suppressing consumer spending--and inflation. That pleases international financiers, but businesses depending on the domestic market are in trouble. KEY MEASURES CONSEQUENCES Maintain tight Spurs exports and keeps current account in balance, monetary and fiscal but businesses suffer from slumping demand as policy; keep peso low. unemployment soars. Boost internal savings Could eventually reduce dependence on foreign through privatization capital but will take several years to pay off. of state pension schemes. Political opposition expected to be significant. Step up privatization Will attract investment and boost competitiveness of petrochemicals by improving infrastructure, but some industries and communications. worry about layoffs. DATA: BUSINESS WEEK
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