Mexico Slips In An Oil Puddle

As crude prices plunge, investors worry about the economy

Mexico started the year on a high note. The economy had largely shrugged off the impact of Asia's turmoil. The government of President Ernesto Zedillo Ponce de Leon was forecasting 5.2% growth in gross domestic product, and beleaguered Mexican workers were looking forward to their first real wage hikes in four years. Then the price of Mexico's oil fell--and fell some more, by nearly one-third, or about $4.40 per barrel, since December.

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