Mexico’s Economy

Mexican President Felipe Calderon said changes to the methods used to calculate economic growth will be “beneficial” and “probably surprise” analysts.

Mexico’s economy may reach $1 trillion, narrowing the gap with Brazil, Latin America’s biggest economy, because of a change in the way output is calculated, according to Citigroup Inc.’s Banamex unit and UBS Pactual. The statistics agency may announce the changes as soon as this month.

The revised GDP figures may show that last decade’s efforts to sell state-owned businesses, sign free-trade accords and facilitate financing in the local market for private companies provided a greater spark to growth than prior numbers had indicated, said Alfredo Thorne, head of Latin America research for JPMorgan Chase & Co. in Mexico City. more at – [bloomberg.com]