Home Blog Page 677

What got more (or less) expensive in Mexico in October?

By
MND Staff
-
1
Sugar skulls at Mexican market
Sugar was one of the food items that spiked in price in October, making Day of the Dead altars more expensive. (Sebastian Martinez/Unsplash)

Mexico’s annual headline inflation rate declined for a ninth consecutive month in October, but remains above the central bank’s target.

Annual inflation was 4.26% last month, the national statistics agency INEGI reported Thursday.

Energy prices have fallen 0.35% compared to last October. (Cuartoscuro)

That rate – the lowest since February 2021 – is 0.19 percentage points lower than the 4.45% rate recorded in September.

Month-over-month inflation was 0.38%, INEGI said. That was the lowest monthly increase in consumer prices in four months.

The annual core inflation rate, which excludes volatile food and energy prices, fell to a 24-month low of 5.5% in October, down from 5.76% in September.

The headline rate was slightly lower than the 4.28% consensus forecast of economists polled by Reuters, while the core rate was in line with market expectations.

Bank of Mexico facade
Mexico’s central bank decided at their Thursday meeting to maintain the key rate at 11.25% in order to continue battling inflation. (Cuartoscuro)

The publication of the October inflation data came ahead of a Bank of Mexico (Banxico) monetary policy meeting on Thursday afternoon.

The central bank’s board decided to maintain Banxico’s key rate at a record high of 11.25% for a fifth consecutive meeting. Inflation has now been above the bank’s 3% target for 32 months.

Banxico has repeatedly said that that “it will be necessary to maintain the reference rate at its current level for an extended period” in order to bring inflation down to its 3% target.

Annual inflation data in detail 

Xcaret
Package tours rose in price by 7.03% October compared to September. (Shutterstock)

INEGI data shows that goods in general were 5.64% more expensive last month than in October 2022. That’s a significant improvement from the 11.15% rate recorded a year ago.

Within the goods in general category, prices for processed food, beverages and tobacco rose 6.95%, while non-food goods were 4.09% dearer.

Fruit and vegetables were 4.77% more expensive, while the cost of meat declined 0.97%. Those rates are vastly better than the 12.63% and 15.61% inflation rates recorded for fruit and vegetables and meat, respectively, in October 2022.

Energy prices, including those for gasoline and electricity, fell 0.35% compared to October last year.

Annual inflation for services was 5.34% in October. That figure is slightly higher than the 5.30% rate recorded in the same month of last year.

Costly carrots, budget-friendly tomatoes 

Carrots at a market
Carrot prices rose nearly 21% in October compared to the month before. (Unsplash)

INEGI reported month-over-month increases and decreases for a range of individual products and services.

Price increases 
  • Prices for carrots rose 20.96% in October compared to September.
  • Electricity +19.23% (mainly due to the conclusion of discounted summer rates in various cities including Mérida, Monterrey, Acapulco and Cancún)
  • Air travel +13.37%
  • Sugar +9.69%
  • Package tours +7.03%
  • Beans +3.71%
  • LP gas +3.42%
Price decreases
  • Prices for tomatoes declined 14.46% in October compared to September.
  • Oranges -11.91%
  • Onions -11.72%
  • Avocados -8.56%
  • Bananas -5.29%
  • Limes -4.33%
  • Chicken -4.05%
  • Lettuce and cabbage -3.52%

Analysts’ views on inflation and interest rates 

“Core inflation, in particular services, remains sticky. And the economy is booming,” said Carlos Capistrán, head of Canada and Mexico economics at the Bank of America.

Data published by INEGI in late October showed that the Mexican economy grew 0.9% in the third quarter compared to the previous three-month period and 3.3% in annual terms. The strong Mexican economy has been a driver of inflation, the Bloomberg news agency reported.

Construction worker in Mexico
Mexico’s “booming” economy has also been a driver of inflation, and an upcoming minimum wage hike could also increase inflationary pressure. (Chandler Denise/Unsplash)

Capistrán said that his team expects the Bank of Mexico to maintain its 11.25% interest rate for “many months.”

“… We expect the first cut in June 2024,” he said.

Jason Tuvey, deputy chief emerging markets economist at Capital Economics, said in a note to clients that “the fresh rise in services inflation will alarm officials at Banxico.”

“We doubt this will prompt a restart to the tightening cycle – interest rates are likely to be left unchanged later today – but there is a growing risk of rate cuts starting later and being even more protracted than we currently anticipate,” he wrote.

Similarly, the chief economist at the brokerage Finamex said that “the worrying part” of the new INEGI data “continues to be the services sector inflation, which does not retreat.”

“The positive surprise is in agricultural data, which continues to help,” Jessica Roldán added.

AMLO at Wednesday press conference
The president mentioned the upcoming minimum wage increased coming in January at his Wednesday morning press conference. (Lopezobrador.org.mx)

Andres Abadia, chief Latin America economist at Pantheon Macroeconomics, said that the “delayed effect of the rise of the Mexican peso during the first three quarters [of 2023], weaker consumer spending and stifling monetary policy will continue to put downward pressure on inflation” moving forward.

However, an increase to the minimum wage in January could add to inflationary pressures. President López Obrador on Wednesday predicted that the increase that will take effect Jan. 1 will be “considerable.”

The federal government will soon meet with business and union groups to discuss the upcoming minimum wage hike.

With reports from El Financiero, El Economista, Bloomberg and Reuters 

Will Acapulco return to its golden age?

By
Sheryl Losser
-
6
The most recent devastation by Hurricane Otis took its toll on the city. Will Acapulco once again become a glamorous and glitzy destination? (Canva)

In the 1950s, 60s, and 70s, Acapulco represented the ultimate in luxury and glamour.  Hollywood royalty and “the rich and famous” flocked to its exclusive resorts. Celebrities bought homes and hotels. Everybody who was anybody spent their free time in this tropical paradise. 

Acapulco lies on a stretch of rugged cliffs, surrounded by lush jungle with golden sands, calm azure waters, and exceptional weather – exotic and movie-set perfect for a resort area.

The Duke of Windsor – briefly the King of the United Kingdom until he abdicated the throne to marry Wallis Simpson – was the first of the jet setters to discover the beauty of Acapulco in the 1920s. Several decades later it was discovered by Hollywood royalty.

Hollywood royalty discovers Acapulco – a tropical paradise

In 1947, when Australian Errol Flynn first flew down to Acapulco with his buddy Teddy Stauffer – the Swiss musician-turned-hotelier – it was little more than a handful of buildings surrounded by jungle. But Stauffer saw the potential in what he described as “a beautiful tropical paradise”.

Rita Hayworth and her husband Orson Welles came to Acapulco when they starred in the 1947 film The Lady from Shanghai – a film which contains some stunning shots of Acapulco’s beaches. They both became frequent visitors.

Acapulco lies on a stretch of rugged cliffs, surrounded by lush jungle with golden sands, calm azure waters, and exceptional weather – exotic and movie-set perfect for a resort area. (Canva)

Former president of Mexico Miguel Alemán (1946 – 1952) had a special place in his heart for Acapulco and was the driving force behind the construction of the Avenida Costera Miguel Alemán – a six-lane thoroughfare along the ocean which attracted nightclubs and restaurants that now bears his name.

Los Flamingos becomes the first luxury resort for Hollywood elite

In 1954, Bo Roos – a top Hollywood business manager – and his friends John Wayne and Johnny Weissmuller (best known for his starring turn as Tarzan) purchased Hotel Los Flamingos, a cliffside spot with a spectacular view of the open sea. Roos then imported their Hollywood posse including Cary Grant, Fred MacMurray, Errol Flynn, Richard Widmark, and Red Skelton to spend time at the hotel which became a hang-out for the “Hollywood Gang” – a group of macho leading men led by Wayne and Weissmuller.  

It is said that Weissmuller invented the bar’s signature drink, the Coco Loco, which was served in a coconut with hibiscus flowers floating on top or festooned with a colorful miniature umbrella hat.  After his days of fame and fortune faded, Weissmuller lived out the rest of his life at the hotel which became known as “La Casa de Tarzan.”

Villa Vera and Las Brisas add to the glamour and glitziness of Acapulco

Ten years after his first visit Stauffer opened Villa Vera Hotel and Racquet Club.  Its quaint villas and private swimming pools immediately became a popular destination for celebrities. In 1957, Elizabeth Taylor married Mike Todd at the resort. Frank Sinatra hid out at Villa Vera when the mob was after him. 

Judy Garland, Dustin Hoffman, Engelbert Humperdinck, George Hamilton, Gina Lollobrigida, Liza Minelli, Ava Gardner, and Brigitte Bardot stayed at the resort. Zsa Zsa Gabor created a stir in the enclave when she plunged into the pool naked. Lana Turner lived at Villa Vera for three years.

The popularity of Villa Vera was quickly followed by Las Brisas, built in 1957, which hosted others from the entertainment industry’s A-list. The resort had the classic elegance of 1950s Hollywood. Constructed on 40 acres of land on the cliffside surrounded by jungle, the resort boasted 250 casitas, each with its own private swimming pools, pink and white jeeps for transportation, and a spectacular full view of the bay.

More restaurants and hotels opened.  The introduction of discotheques provided another form of entertainment and decadence.  The first disco hotspot was Armando’s LeClub. The disco Studio 52, an homage to Studio 54 in New York City, also became a trendy place to dance the night away. (Canva)

Las Brisas was the ultimate in luxury. The resort sported its signature “power pink” and a palette of various shades of white throughout including the staff uniforms. From the moment a celebrity was whisked up the hillside in a pink and white jeep (each one named for a celebrity), they were ensconced in elegance. The lawns and gardens were meticulously manicured, the casitas impeccably clean, and fresh hibiscus petals were scattered across the surface of the private pools. Each casita had a Magic Box with latched glass doors inside and outside where staff would leave a steaming pot of coffee and a basket of freshly baked sweet rolls every morning.

Diversions and glitzy parties abound

When you were tired of lounging around your pool, there was the Sunset Bar, or you could go to the swim-up bar in one of their two saltwater pools. For a full breakfast, there was El Tulipán, the resort’s sky-high restaurant with a spectacular view of the bay.  For fresh fish and Mexican specialties, you could have dinner at La Concha.

Other attractions included going to La Quebrada to watch death-defying cliff divers plunge from 135-ft cliffs into the Pacific Ocean, or boarding a jeep for a safari to a coconut plantation at Cayaco, a picnic on the beach, or joining burro races or paddle canoes up a jungle river. At night there was the very popular La Perla nightclub or glitzy parties.

One of the hostesses with the most memorable parties was Dolores Olmedo, “The Grand Dame of Acapulco.”  Her home, La Casa de los Vientos, hosted Mexico’s largest collection of Diego Rivera paintings. She was Rivera’s muse, and she so admired the artist she built a studio for him adjoining her house. When Frida Kahlo died, Rivera lived his final four years of life in her Acapulco home.

Hollywood becomes infatuated with Acapulco

Elizabeth Taylor honeymooned in Acapulco after seven of her eight marriages (she married Richard Burton twice). Mexican actress Dolores del Rio, who had affairs with both Orson Welles and Errol Flynn, met her future husband American millionaire Lewis A. Riley in Acapulco and built a palatial home at the top of the rocky cliffs as did Orson Welles and Johnny Weissmuller. Jack and Jackie Kennedy honeymooned in Acapulco. 

In the 60s and 70s, Las Brisas became the retreat of choice for the rich and famous who wanted exclusivity and privacy attracting luminaries Tom Cruise, Sylvester Stallone, Kevin Costner, Sophia Loren, Johnny Carson, Buzz Aldrin, and Elizabeth Taylor. After their trip to the moon, the Apollo 11 astronauts relaxed there with their families. Lynda Bird Johnson honeymooned at Las Brisas.

Hollywood was infatuated with Acapulco luring a new generation of star power including Robert Wagner, Stephanie Powers, Farah Fawcett Majors, Joan Collins, and bestselling author Harold Robbins.

The 1963 film “Fun in Acapulco” starring Elvis Presley and Ursula Andress introduced a broader audience to the beauty of Acapulco.  By the 1970s Acapulco was at its zenith and La Costera was a diamond necklace ringing the bay. 

More restaurants and hotels opened. The introduction of discotheques provided another form of entertainment and decadence. The first disco hotspot was Armando’s LeClub.  The disco Studio 52, an homage to Studio 54 in New York City, also became a trendy place to dance the night away. 

Merle Oberon, who hosted legendary parties, made news worldwide in 1979 when she gave the Shah of Iran – Mohammed Reza Pahlavi – temporary refuge at her home.  Howard Hughes spent the last few weeks of his life at a penthouse that encompassed the entire top floor of the Acapulco Princess, an Aztec pyramid-shaped luxury hotel built in 1971. The unofficial photographer of the rich and famous, Slim Aarons, captured iconic poolside images and photos of actors like Kirk Douglas and Ronald Reagan alongside fashion designers Oscar de la Renta and Emilio Pucci. In the 50s, 60s, and 70s everybody who was anybody was seen in Acapulco.

Acapulco begins to lose its luster

By the late 1970s, Acapulco’s glamour began to fade. Like an aging diva, the glamour took on the look of seediness and decadence. The 1980s saw an explosion of high-rise hotels, mass tourism, increased pollution, and crime which drove away the jetsetters. The glamour and glitz of yesteryear ended, leaving behind only legendary stories of what once was.  However, the natural beauty of Acapulco persevered, and the resort continued to attract tourists and honeymooners.

The most recent devastation by Hurricane Otis took its toll on the city. Will Acapulco – like a Phoenix rising from the rubble – once again become a glamorous and glitzy destination?  With enough government and private investment, the resort can experience a renaissance.  It will be exciting to watch as this tropical paradise goes through another transformation.

Sheryl Losser is a former public relations executive, researcher, writer, and editor. She has been writing professionally for 35 years.  She moved to Mazatlán in 2021 and works part-time doing freelance research and writing. She can be reached at AuthorSherylLosser@gmail.com

Mexico’s surfers’ favorite beer was born in Mazatlán

By
Janet Blaser
-
5
Mexico’s iconic beer: Born in Mazatlán, found in Baja, imported by surfers. More than 100 years of tradition. (Canva)

Surfers aren’t usually what comes to mind when you think of someone at the forefront of a culinary trend. But that’s the case with Mexico’s iconic Pacífico beer. 

The adventurous surfers not only found good waves but also a great local beer. (Canva)

Today this outstanding pilsner-style lager is one of the most popular brews in the world. But Pacífico had been in Mexico for more than 100 years before a twist of fate—and some thirsty California surfers—catapulted it into the international arena. Those humble beginnings are the basis of the brand’s slogan: “Born in Mazatlán, found in Baja, imported by surfers.”

The adventurous surfers not only found good waves but a great local beer, and they loaded up their vehicles with cases of it to bring home. During the 1970s, Pacífico became the legendary drink of choice in the Southern California surf community, but it wasn’t until 1985 that it began to be legally imported to the U.S. 

Pacífico’s crisp, refreshing “ocean mist” flavor results from high-quality, specially grown hops and barley and a secret process for roasting its distinctive malts. Serious drinkers might even compare its flavor profile to high-quality German beers—and they’d be correct.

It was a trio of German immigrants in the seaside town of Mazatlán, Sinaloa, who created Pacífico beer. Jorge Claussen, Germán Evers and Emilio Philipy opened Cervecería del Pacífico brewery in 1899 and released the first bottle of Pacífico a year later. The men were so influential and involved in the city that their names still grace some main streets and government buildings today. Pacífico has been a proud sponsor of many of Mazatlán’s annual events for generations, including Carnaval and Moto Week.

They were part of an explosion of immigrants and German-style breweries opening in Mexico from the 19th to early 20th centuries, drawn by the short-lived reign of Austrian archduke Maximilian I of Mexico, an elected president of the equally short-lived Second Mexican Empire. The influx of German immigrants brought with them their love of beer, along with their homeland’s polka music, which transformed into Sinaloa’s famous horn-heavy banda—but that’s another story. Beer would eventually replace pulque as the most popular fermented beverage in Mexico. 

The original Pacífico brewery still operates in Mazatlán’s Centro Histórico. Until about 10 years ago it was open to the public for tours that ended in a rooftop tasting room filled with historic photographs and a 360-degree view of the city. Grupo Modelo, which took over the operation in 1954, was bought by beer conglomerate Anheuser-Busch InBev in 2013 and the tours ended. 

Mexico-based Grupo Modelo also markets Corona, Negra Modelo and Modelo Especial for export and Victoria, Leon and Montejo brands for domestic consumption. Corona is Mexico’s best-selling beer, and one of the top five most-consumed beers in the world. Pacífico and Corona are both pilsners, with a 4.5% alcohol content but made with slightly different formulas. Today, 80% of imported beers in the U.S. come from Mexico, which exports twice as much beer as any other country.

AB-InBev, the largest beer company in the world, and Heineken N.V. (makers of Tecate) control 90% of the beer market. That rivalry between Pacífico and Tecate drinkers? It’s based on taste and very real.

There’s an urban legend that in Mazatlán beer is cheaper than water. In the case of Pacifico, that’s often true, especially during holidays or big events. Pacifico is available in four sizes: cute little 6 oz. cuartitos, regular 12 oz. medias, tubby 32 oz. ballenas, and the so-big-you-have-to-see-it-to-believe-it 1.2 liter-ballenóns. (Today’s Spanish lesson: ballena means whale; ballenón means a really big whale.) Those big sizes are one of Mazatlán’s claims to fame, historically only available in that Pacific coast town, where one of the most popular tourist photo ops is relaxing on the beach, ballena in hand.

Janet Blaser is the author of the best-selling book, Why We Left: An Anthology of American Women Expats, featured on CNBC and MarketWatch. She has lived in Mexico since 2006. You can find her on Facebook.

Police officer promoted after act of kindness in Acapulco

By
MND Staff
-
19
Mexico City police officer Arizbeth Dionisio Ambrosio has been promoted after images of her feeding a hungry baby during the aftermath of Hurricane Otis went viral. (Jorge Becerríl/X)

A Mexico City police officer who breastfed a hungry baby in the aftermath of Hurricane Otis has been promoted.

Arizbeth Dionisio Ambrosio was deployed to Acapulco after the Category 5 storm made landfall on Oct. 25 and nursed a four-month-old baby boy while on duty in the devastated resort city.

Dionisio, a mother of a one-year-old, was promoted to “suboficial” as a result of her actions in Acapulco. (Jorge Becerríl/X)

The infant hadn’t eaten for a prolonged period and was crying from hunger when the 33-year-old police officer spoke to his mother, who was unable to breastfeed her son herself, and offered to nurse him.

Dionisio, a mother of a one-year-old, was promoted earlier this week in recognition of her act of compassion, her rank upgraded to “suboficial” from “policía primero.”

“For her vocation of service to citizens and for exalting the name of the Mexico City Ministry of Citizens Security, my colleague Arizbeth Dionisio Ambrosio of the Zorros group, who protected the life of a baby in Acapulco, was promoted,” Mexico City Security Minister Pablo Vázquez Camacho said on the X social media site on Monday. 

“Her work is an example of humanism for everyone,” he added.

Dionisio was part of the “Zorros” task force sent to provide humanitarian relief in Acapulco. (Jorge Becerríl/X)

Following her promotion, Dionisio said that she was happy that she was able to help the baby and his mother in their hour of need. She downplayed her act of kindness, portraying it as insignificant amid the enormity of the devastation caused by Otis.

“I did very little, we can help more,” Dionisio said. “If I could, I’d return … to see the baby.”

The policewoman previously told reporters that it felt “nice” to help a crying, hungry baby.

“If something pains us as mothers it’s … [seeing] a baby in these circumstances,” she said.

With reports from Expansión, BBC and El Universal 

Mexico in Numbers: Drought

By
Cat Rainsford
-
3
Mexico has had a very dry year, causing water shortages and crop failures in some parts of the country. (Crisanta Espinosa Aguilar/Cuartoscuro)

Though hurricanes have battered the western coast of Mexico, much of the rest of the country is still parched. Months of below-average rainfall have left most of the center and north of Mexico in moderate to exceptional drought. The worst-affected states have seen reservoirs run dry, crops fail and thousands of cattle die.

Mexico’s Drought Monitor, published every two weeks by the National Meteorological Service (MSN), shows that the percentage of the country affected by drought has finally started to drop – from 75% on Sep. 30 to 59% on Oct. 31. 

As of Oct. 31, 59% of the country was suffering from moderate to exceptional drought. (SMN/MND)

Not since 2012 has drought in Mexico been so widespread – with 1,614 municipalities across the country in a state of drought. Of these, 39 are rated at level 4 – the most serious category of drought. A further 461 are at risk of drought due to “abnormally low” low rainfall in 2023. Some analysts have claimed that it is the driest year in the Mexican countryside since 1957, with 78% of rural municipalities affected. This year has been the second driest since records began in 2004.

Drought conditions in the Valley of Mexico – home to almost 20 million people – have now affected 98% of the region. 

The National Agricultural Council has called for more government investment in hydrological infrastructure, warning that Mexico’s water shortages are “a problem we can’t keep putting off.” 

But how bad is Mexico’s drought, comparatively? In this edition of Mexico in Numbers, we look at how 2023 compares to past years, which regions and sectors of the country are most affected and how Mexico ranks globally for water stress.

How does the drought compare with the last five years?

Mexico has suffered increasingly severe drought for the last five years (2018-2023), after relatively good rainfall during the previous five (2013-2018).

At the driest point of 2023 in September, 75% of the country was in drought, 55.8% in severe drought, 31.6% in extreme drought and 1.8% in exceptional drought. In the last five years, comparably dry conditions have only been seen in May/June 2021, when up to 75.6% of the country was in drought, 54.8% in severe drought, 21.3% in extreme drought and 2.8% in exceptional drought.

This chart shows the percentage of municipalities with moderate to severe drought in the same period (as of Oct. 31) from 2018 to 2023. (SMN/MND)

However, this year’s drought has had a particularly severe impact because it has lasted much longer than usual, past the point when Mexico would normally expect to see autumn rains. Drought figures for October show an overall fall, but the country remains incredibly dry, with 15 of 32 states experiencing drought in at least 70% of municipalities.

How does the drought measure up historically?

Mexico’s last severe drought was in 2011, when up to 87% of the country faced drought conditions and up to 23% saw exceptional drought. Again, however, the worst conditions were earlier in the year, with the rainy season narrowing the scope of the drought by fall.

Although the Drought Monitor only gives detailed figures from 2003, the SMN’s historical records show that September 2023 was the driest September since 1941 and the hottest since 1953.

Where is the drought most acute?

September’s drought affected almost all of central and northern Mexico, extending over 96.5% of the territory in the northeast. The most acute regions of exceptional drought were in Durango and in the Huasteca region, to the southeast of San Luis Potosí. This has been exacerbated by a lack of rainfall, which would normally provide some respite and refill vital reservoirs between June and October. Without this rainfall, stress on existing acquifers and other water storage is increased. 

Climatological reports in September showed a 74.4% deficit in rainfall for that month alone, making it the worst month for rain so far this year. The SMN also reported that the states of Guerrero, Hidalgo, Nuevo León, Oaxaca, Querétaro, San Luis Potosí and Veracruz all recorded their worst September rainfall since 1941.

This chart shows 2023 accumulated rainfall (blue line) versus normal accumulated rainfall (black line). (SMN)

The worst impact on agriculture has been in Chihuahua, where 193,266 hectares of crops were lost between January and September; followed by Zacatecas, with 153,684 hectares lost, and San Luis Potosí with 64,637. A total of 502,550 hectares have been lost across Mexico, the highest figure since at least 2018.

Which crops have been most affected?

The drought’s impact on farming has sparked fears of food shortages in the coming months. The crops most affected are beans, with 165,716 hectares lost between January and September; grain corn, with 158,134 hectares lost; and forage oats, with 96,808 hectares lost.

Drought has caused thousands of hectares of crop failure, with Chihuahua as the worst-affected state from January to September this year. (MND)

The livestock industry has also been hard hit. In Durango, 18,000 cattle were reported to have died due to water shortages by August, with severe impacts also seen in ranching states such as Jalisco and Veracruz.

How does Mexico rank globally for water stress?

The World Resources Institute grades Mexico 4.0 out of 5 for water stress. This places it on the borderline between the “high” and “extremely high” categories, with up to 80% of the territory affected.

Globally, the WRI ranks Mexico as the 26th most water-stressed country worldwide.

With reports from El Economista

Oaxaca-Puerto Escondido highway opening date delayed again

By
MND Staff
-
6
Puerto Escondido-Oaxaca highway collapse site
Originally slated for completion in 2015, the Oaxaca-Puerto Escondido highway was scheduled to be inaugurated this month. (YouTube / Andrés Manuel López Obrador)

President Andrés Manuel López Obrador announced during his Monday morning press briefing that several landslides had occurred on the long-anticipated Oaxaca-Puerto Escondido highway, making it impossible to inaugurate the project on Nov. 29, as planned.

According to the president, two slopes along the route collapsed due to rains reported over the weekend. 

Collapse site
The president blamed the collapse on natural conditions. (YouTube / Andrés Manuel López Obrador)

Repair work on the highway is estimated to last a couple of months before the site’s inauguration on a new date: January 2024. Prior to the accident, the entire route was one bridge away from becoming functional, the president explained.

“This is bad news, but we will still ensure that it is inaugurated in early January,” López Obrador added.

The project has faced numerous setbacks including technical issues and social conflicts, particularly since the initial contract was awarded in 2009, and then the original concessionaire transferred the project rights to another company in 2014. In 2016, one year past its original projected completion date, the halfway-completed project was suspended again and handed over to the National Infrastructure Fund (Fonadin).

In August last year, officials were still expecting the highway to open by the end of 2022. 

Puerto Escondido-Oaxaca highway collapse site
Collapse site as seen from drone footage shared at AMLO’s Monday morning press conference. (YouTube / Andrés Manuel López Obrador)

The new highway – which will replace existing Highway 131, a treacherous 102-kilometer mountain road – will allow travelers to get from Oaxaca city to Puerto Escondido in 2.5 hours instead of the current 6 hours it currently takes to reach the Pacific Coast beach destination. 

With reports from Infobae and Expansión

Mexico beats Canada and China again as top US trade partner

By
MND Staff
-
1
Trailers full of cars wait to be loaded onto ships at a dock in Veracruz
Vehicles and auto parts represent some of the top products Mexico exports to the U.S. (Asipona Veracruz)

Mexico was the United States’ top trade partner in the first nine months of 2023, according to new U.S. government data, with two-way trade worth almost US $600 billion.

Data published by the U.S. Census Bureau and the U.S. Bureau of Economic Analysis on Tuesday showed that Mexico beat out Canada and China to claim the coveted position of leading trade partner of the world’s largest economy.

An avocado export truck in Jalisco
Mexico has once again emerged as the largest trading partner for the United States this year. The country exports a diverse range of goods north of the border. (Secretaria de Agricultura/Cuartoscuro)

Neighbors and economic partners

Two-way trade between Mexico and the United States was worth US $599.79 billion between January and September. That figure is up 2.1% compared to the same period of 2022, and an impressive 59% compared to a decade ago.

Trade between Mexico and the U.S. accounted for 15.7% of the United States’ total trade with all its economic partners in the first nine months of the year.

Canada-U.S. trade accounted for 15.3% of the total, while China-U.S. trade made up 11.1%. The United States’ trade with those two countries declined in annual terms in the first nine months of the year.

Trade between the U.S. and Canada accounted for 15.3% of the U.S. total, slightly behind Mexico at 15.7%, results show. (CPKC)

Trade between Mexico and the United States was worth $67.11 billion in September, down from $70.77 billion in August. Despite the month-over-month decline, Mexico was the United States top trade partner in September.

These figures, of course, don’t account for illicit trade – the shipment of contraband such as drugs and weapons across the Mexico-U.S. border. Needless to say, such trade is very lucrative for the criminal organizations involved in it.

Mexican exports to the U.S. increased  

Mexico shipped exports worth a record high $356.25 billion to the United States between January and September. That’s an increase of 4.3% compared to the same period of last year.

Agricultural produce are amongst Mexico’s largest exports – including avocados. (Cuartoscuro)

Mexico had a 15.5% share of the export market to the U.S., ahead of Canada and China, which both had a 13.7% share in the first nine months of 2023.

Mexico exports a wide range of goods to the United States including vehicles, auto parts, crude oil, electronics, fruit and vegetables, meat and beverages such as beer and tequila.

In September, Mexican exports to the U.S. were worth $39.54 billion, down from $41.75 billion in August. On an annual basis, Mexican exports to the U.S. fell 5.1% in September, the biggest decline in over three years.

According to the Bank of Mexico, Mexico’s exports to the United States in September accounted for 83.7% of the country’s total exports.

The central branch of the Bank of Mexico in Mexico City.
The Bank of Mexico says 83.7% of Mexican exports went to the United States in September. (Wikimedia Commons/Alfonso21)

U.S. imports to Mexico declined 

U.S. imports were worth $243.5 billion between January and September, an annual decline of 0.9%. It was the first time since 2020 that imports from the U.S. declined in the first nine months of the year.

U.S. imports to Mexico include gasoline, agricultural products including corn used as livestock feed and capital goods such as machinery and plastics.

U.S. imports to Mexico in September were worth $27.65 billion, down from $29.01 billion in August.

Livestock feed has been a major U.S. export to Mexico, though the country is importing less than last year. (United Soybean Board/Wikimedia)

Mexico records a healthy trade surplus

Mexico’s surplus with its northern neighbor in the first nine months of the year was a record high $112.7 billion. That figure is 17.7% higher than the surplus Mexico recorded in the same period of 2022.

Mexico’s trade surplus with the U.S. in September was $12.74 billion.

Analyst: Mexico has benefited from the China-U.S. trade war 

Gabriela Siller, director of economic analysis at Mexican bank Banco Base, said that Mexico’s foreign trade performance has improved as a result of the China-United States trade war.

Mexico has been a winner in the U.S.-China trade war, according to economist Gabriella Siller. (Gabriella Siller)

While Mexico’s exports to the U.S. increased 4.3% in the first nine months of the year, China’s exports to the same country declined 24.4%.

While Mexico is now the United States’ top economic partner, Siller warned that a slowdown of manufacturing activity in the United States and the appreciation of the Mexican peso are affecting trade between the two countries.

Citing Mexico’s export performance in September, independent economist Mario Correa made similar remarks.

Siller said that the stability (or otherwise) of the USD:MXN exchange rate and the economic situation in the United States will have a significant impact on Mexico’s export performance moving forward.

The newspaper El Economista reported that Mexico appears on track to maintain its position as the United States’ top trade partner through to the end of 2023.

Correa said that Mexico needs to have a “diversified supply chain” and ensure that it complies with “increasingly important” environmental, social and corporate governance criteria set by its most important trade partner in order to main its strong economic ties with the U.S.

One factor that is set to benefit Mexico’s export performance in the future is the relocation of foreign manufacturing companies here.

Foreign direct investment in Mexico reached a record high of over $29 billion in the first half of 2023, and incoming capital flows appear likely to grow even more in the coming years.

With reports from El Economista, Expansión, El Financiero and Reforma  

Dreaming of the beach life? What you need to know about buying beachfront property in Mexico

By
Henrietta Weekes
-
0
Together with Mexico International Real Estate.

How do you invest in a home or vacation home on the beach?  Whether you’re thinking about buying real estate in Mérida or on the Gulf coast, there is something for everyone when buying beach property. Right now, beach homes in Mexico are hot to trot as people are seeking a more relaxed and sunny lifestyle in a more peaceful part of the world. 

How do I invest in beach property in the Yucatan? 

Beach front with uninterrupted views and access to the ocean, is the most important determinant to market value on the beach.

“There’s a big billboard on the beach highway near Mérida that says, ‘Five years ago was always the best time to invest!’ and I think that’s so pertinent right now”, says Mitchell Keenan at Mexico International Real Estate, who’s witnessed the real estate landscape explode in his 30 years of working within the industry. With a stunning natural environment, the highest safety record in the country, a vibrant cultural scene, and the new Maya train (Tren Maya), business investment is pouring into the region. “There is also warm weather and sunshine year round,” Mitchell tells MND. 

Where can I buy beach property in Mexico? 

“People might be looking at several coastal spots,” Mitchell continues. Puerto Vallarta, Acapulco, or Mazatlán, for instance, offer more nightlife and a big restaurant and social scene. And the Caribbean coast is great for people who love to snorkel or dive. Mitchell is seeing many people choosing to buy on the Gulf coast near Mérida, which offers a more reasonably priced beach community. Buyers are happy to make the 3-4 hour trip to Cozumel or Cancun for scuba diving but benefit from living near Mérida. “Mérida has always had that undiscovered feel to it and still, to a large degree, does,” Mitchell says, 

What to look for in a real estate agent when buying beach property

Why wait to retire to invest in beach property in Mexico?!

It makes sense to find a real estate agent who is seasoned, understands the area, is busy, invested in their career, has the licensing and has taken some additional courses. And of course, can provide references. “It’s really important to be well connected,” Mitch tells us, “Especially when you invest in property in another country.”  

 How do I buy beach property in Mexico?

  1. Find a good attorney/notario.

It’s the buyer’s choice, as they pay all the closing costs and the seller pays the taxes. Recommendations from a good real estate agent will help you avoid headaches. They should be able to provide you with all the necessary contacts – attorney, notario, architect, contractor, etc. Most competent agents are bi or multi-lingual and have many contacts in their area of influence. 

  1. You’ll need a fideicomiso. What is that? 

All the beaches in Mexico are in the restricted zone. To hold title to beach property, you will most likely want to utilize a fideicomiso. The best translation of fideicomiso to English is “fiduciary bank trust.” It’s a document that provides you with the vehicle to hold the title to the property with the bank.  Both the foreign owner and the bank are named in the documents with the bank owing a fiduciary responsibility to the foreign owner. 

  1. How do you get that bank trust, and how much does it cost? 

Your attorney will apply for the permit from Mexico City.  The fideicomiso including the permits run around 3,000 USD. Only foreigners need this fideicomiso, not nationals. Annual payment on a fideicomiso will run approximately 500-700 USD a year based upon the value of the property.

With a stunning natural environment, the highest safety record in the country, a vibrant cultural scene, and the new Maya train (Tren Maya), business investment is pouring into the region. Together with Mexico International Real Estate.
  1. How long does it take to acquire? And for how long is it valid?

You can plan for around 8-12 weeks for your attorney to have the authorized document. It’s a 50-year document and it is renewable every 50 years in perpetuity.  Additionally, you are required to name an heir(s) in the fideicomiso. In the case of your demise, the rights to the fideicomiso are inherited by your heir(s). They can further hold the fideicomiso en perpetuity.

  1. What are the benefits of a fideicomiso? 

You will acquire a further level of protection to hold a regular title because it’s tied to the bank. The bank has a fiduciary responsibility to represent the rights of the owner (holder of the fideicomiso).  You also can avoid a large capital gains tax when you sell.

  1. Tax benefits from holding real estate in a fideicomiso? 

By holding title with the fideicomiso, the holder is benefited by being able to avoid part if not all of the 31% capital gains tax (ISR in Mexico). Additionally, you’ll need your resident visa, your Mexican tax ID number, a CFE bill or bank statement that reflects your name, the address of the property and your tax ID #.

  1. What beachfront properties can I buy?

In addition to buying an existing home, you may also wish to invest in raw beach and build your own home. It usually takes between 12 – 18 months to build, depending on the weather and the availability of construction materials. A 1,800 square meter lot currently on the market could run you around US $240,000 near Mérida. Or buy an existing home, save time, and make it your own. Remodeling costs are reasonable.

  1. What will affect the value of beach property? 

Beach front with uninterrupted views and access to the ocean, is the most important determinant to market value on the beach. Location, mature trees and landscaping, sand dunes and neighboring properties will also increase value.  Access to the property – how far it is from the airport, and how are the roads?  For the most part, beachfront homes near Mérida are accessible by paved roads. Location in terms of local services, clinics, schools, and shopping. There are beach properties over 90 minutes from Mérida, and values tend to trend downward the further away from Mérida.

  1. How safe is beach living? 

You have to research your chosen area, but if you’re on the Mérida coast, safety is part of Yucatan culture. The ‘police force army’ in Yucatan is an enormous, friendly force. They’re as likely to help you change a tire than write you a speeding ticket. 

  1. What can you expect from beach culture in Mexico?

The small towns are tight-knit fishing and family communities. Foreigners will often support schools, orphanages, or trash programs and are respected in the local communities for their contributions.  

  1. What about property tax? 

It’s a deal closer. For a US $500,000 home, you’re looking at the grand sum of US $200 a year or less. Property taxes are very inexpensive! 

  1. What else to consider when looking for beach property?   

Having a medical clinic nearby is a plus. Most of the pueblos have clinics. Shopping is always important.  Nice to stay within 20 minutes of decent markets, shops and gas stations.

If you’re buying a vacation home for part-time Airbnb or rentals, like 70% of our clients, you’ll need a good choice of property managers, “of which there are some good ones available,” Mitchell tells us.   

What are the predictions for beach living over the next 5 years? 

Mitchell tells MND, “The beach growth has truly exploded.  Many new high-rises, condos and multiunit communities are being built. I’m conservative about making predictions but all things remaining equal, I see good growth of value.”

The Governor of Yucatán recently attended President López Obrador’s morning press conference in his new role as Head of the Governor’s Association in Mexico and discussed the Maya Train and the region’s rapid economic growth. Why wait to retire to invest in beach property in Mexico?!  Instead of buying a 2 million dollar condo in Florida, it’s possible to choose the good life – relaxed, easy, safe, affordable, and happy – on the coast of Mexico.  Mitchell concludes, “We live in crazy, unpredictable times. Just go for it!”  

This article is sponsored by Mexico International Real Estate. Mexico International is the Yucatán Peninsula’s number-one real estate agency.

Supreme Court Justice Zaldívar resigns to join a presidential campaign

By
MND Staff
-
0
Arturo Zaldívar poses with then-candidate Claudia Sheinbaum
Former Supreme Court Chief Justice Arturo Zaldívar, coordinator of policy and government in President Claudia Sheinbaum's cabinet, thanked the many judicial hopefuls for their applications. (Claudia Sheinbaum/Cuartoscuro)

Supreme Court Justice Arturo Zaldívar announced his resignation on Tuesday, saying that he would continue to serve Mexico by joining the campaign of Morena presidential candidate Claudia Sheinbaum.

Just over two hours after Zaldívar posted a copy of the resignation letter he sent to López Obrador to his social media accounts, Claudia Sheinbaum took to X, formerly Twitter, to announce that she had met with the justice and that they had agreed to “work together to advance the transformation of the country.”

Arturo Zaldívar (right) has served on the Supreme Court since 2009. (SCJN)

Zaldívar, who was appointed to the Supreme Court (SCJN) during the 2006-12 presidency of Felipe Calderón, said in his letter that he believed that his “cycle” serving on the country’s highest court had come to an end, even though his 15-year term is not due to conclude until Nov. 30, 2024.

He said that “the contributions I can make from this position in the consolidation of a better country have become marginal.”

Zaldívar, chief justice between 2019 and 2022, was one of three justices out of 11 who regularly favored the current government on rulings. However, their votes were insufficient to stop a range of rulings against the López Obrador administration, including decisions that struck down the controversial electoral reform package that passed Congress earlier this year.

Zaldívar, 64, told López Obrador that he believed that joining the “transformation” movement and contributing to the “construction of a fairer and more egalitarian country” was of “the greatest importance.”

Claudia Sheinbaum with Alfonso Durazo and Mario Delgado
Claudia Sheinbaum (center) is the Morena candidate for the 2024 presidential election. The party, founded by incumbent president López Obrador, is favored to win again. (Claudia Sheinbaum/X)

“… I hope to continue collaborating toward [creating] the Mexico we all dream of,” he wrote.

In a subsequent interview, Zaldívar said he was joining the political project initiated by López Obrador – and which Sheinbaum hopes to continue as president – as a “matter of conviction.”

“I want to make it clear that I’m not leaving the court to take on a public position. I’m going to join a political-social project in which I believe in order to consolidate the transformation of the country, to support a project whose primary focus are those who have the least and need the most,” he said.

“… I’m joining a woman I admire, trust and have affection for,” Zaldívar said, referring to Sheinbaum.

President López Obrador applauds Supreme Court Chief Justice Arturo Zaldívar at the third annual report of the federal judiciary in Dec. 2021.
President López Obrador applauds Supreme Court Chief Justice Arturo Zaldívar at the third annual report of the federal judiciary in December 2021. Gobierno de México

“I think she is an educated, intelligent, committed and sensitive woman, who I have no doubt will be a great president of Mexico,” he said.

His resignation as a Supreme Court justice must be approved by the Senate, in which the ruling Morena party and its allies have a majority.

The SCJN said in a brief statement on Tuesday that it was awaiting the opinion of the president and the Senate on the matter, “in accordance with the provisions in the constitution.”

The court noted that article 98 of the constitution says that resignations of Supreme Court justices “will only proceed for serious reasons” and that they must be referred to the executive and, if accepted, subsequently sent to the Senate for approval.

López Obrador said Wednesday morning that he had accepted Zaldívar’s resignation and noted that the Senate will have the “final word” on the matter.

He said he will put forward a short list of three women to replace the outgoing justice and complete the final period of his 15-year term.

President López Obrador has said he will carefully consider the appointment of a replacement judge – from a shortlist of three female candidates. (lopezobrador.org.mx)

Women are “more honest and hardworking” than men, López Obrador said, adding that he was in favor of Zaldívar’s replacement continuing as a SCJN justice beyond the completion of the 15-year term the justice began in 2009.

Zaldívar, who voted in favor of the decriminalization of abortion, is considered a close ally of the president, but the two men are not without their differences, clashing in 2021 over a court ruling on the use of pre-trial detention.

López Obrador is a frequent critic of the judiciary, and Supreme Court justices in particular, claiming that they regularly hand down rulings that favor an elite minority rather than the people of Mexico in general. His government recently eliminated 13 public trusts that helped fund the federal judiciary, including the SCJN, angering court workers.

Before he leaves office next October, López Obrador intends to send a judicial reform bill to Congress, which, among other things, would allow citizens to directly elect Supreme Court justices and other judges.

Mario Delgado, Morena’s national president, said Tuesday that Zaldívar has vast experience and could make “very valuable contributions” to the judicial reform plan.

Time will tell whether he’ll take a formal role in the next federal government, if – as is currently expected – Sheinbaum prevails on June 2, 2024.

With reports from Reforma, El Economista, El Universal and El Financiero 

Latin America’s second-most expensive neighborhood is in Mexico

By
MND Staff
-
0
Puerta de Hierro in Guadalajara was one of Latin America's most expensive neighborhoods according to real estate firm research. (Ricardo Pacheco/Shutterstock)

A group of three real estate firms released their latest report on Latin America’s most expensive neighborhoods, and three Mexican neighborhoods are in the top 10.  

Compiled by real estate firms Properati, Lamudi and Trovit, the report offers important takeaways on the real estate market around the region.

The list ranked Monterrey’s Del Valle as Mexico’s most expensive neighborhood – coming in second in Latin America. (Monica Garza/Shutterstock)

Which countries were included in the survey?

 The report analyzed data from Argentina, Mexico, Brazil, Uruguay, Chile, Colombia, Guatemala, Costa Rica, Panamá, Perú, Paraguay, Venezuela and Uruguay.

Out of the 13 countries analyzed, the top 10 most expensive neighborhoods are found in five different countries: Argentina, Mexico, Brazil, Uruguay and Chile.

How were housing costs measured?

Buenos Aires’ Puerto Madero neighborhood ranks as Latin America’s most expensive. (En Viaje)

The analysis measured the average price per square meter of housing in 26 upper-class neighborhoods of the 13 countries.  

Which Mexican neighborhoods are on the list?

Del Valle in Monterrey is the most expensive neighborhood in Mexico and the second-most expensive in Latin America. It is followed by Puerta de Hierro in Guadalajara, which came in at No. 9 and Bosques de las Lomas in Mexico City, which rounded out the top 10. 

Lomas de Angelópolis in Puebla came in at No. 17. 

Colombia and Mexico were the only Latin American countries with more than three neighborhoods included in the ranking.  

The trendy Lomas de Angelópolis district in Puebla also made the top 10. (Ufara)

How do the rankings compare to last year?

Puerto Madero in Argentina once again secured the top spot after it ranked No. 1 in 2022. 

Meanwhile, Ipanema in Brazil, which came in second last year, dropped one position to give way to Del Valle in Monterrey, which had previously ranked at No. 4 in 2022. 

Puerta de Hierro in Guadalajara fell two spots from No. 7 last year, while Bosques de las Lomas in Mexico City also dropped from the eighth spot in 2022.  

What’s the price per square meter of the top three neighborhoods on the list?

According to the report, the cost of buying a two or three-bedroom apartment in Puerto Madero, Buenos Aires is approximately US $5,845 per square meter. In Del Valle, Monterrey, the average value per square meter is US $4,071, while Ipanema reports an average of US $4,008 per square meter.

With reports from El Economista

1...676677678...2,132Page 677 of 2,132