Mexican Economic Crisis 1994

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THE 1994 ECONOMIC CRISIS IN...

Rate of poverty

Unemployment rate

Martin, G. (2000). Employment and unemployment in Mexico in the 1990s. Recovered from http://www.bls.gov/opub/mlr/2000/11/art1full.pdf

The difference between 1994 and 1995 shows an exaggerated decrease in the GDP, giving the idea that there was a lot of unemployment during that period and an affection during the next years (shown in the next slide).

The effect the economic crisis in Mexico, shows a great change in the poverty in Mexico, the highest poverty rate is shown in the 1996 but it's growing start with the crisis. In 1994 the poverty rate was %10.6 and in 1996 was of %16.9.

The reason of this is because all the mexican economy fall, and with this also the unemployment rate, the people of medium class who lost their jobs, in a few months get in the poverty.

Martin, G. (2000). Employment and unemployment in Mexico in the 1990s. Recovered from http://www.bls.gov/opub/mlr/2000/11/art1full.pdf

The unemployment during 1993 was of 490,941 people, but when the crisis affected Mexico in 1994 and 1995 the unemployment people increased more than 50%, giving a result of 1,107,667 people unemployed in 1995.

Poverty in Mexico 1994. (s.f.) Mexico pobreza de acuerdo a los ingresos. MexicoMaxico. From : http://mexicomaxico.org/Voto/pobreza.htm

Mexican Economic Crisis 1994

MEXICO

Luis Fernando Arias Pérez A01228285

Carolina Isabel Trejo Montiel A01228424

Francisco Márquez Bocardo A01227697

Edwin González Alacaraz A01630697

Sebastián Cedeño González A01227809

Group 6

Society, Economics & Politics

Tecnológico de Monterrey

Another impact

Current economic

After the economic crisis, the people in Mexico inhibit for voting for PRI again, before that PRI had the government power for 70 years, but with that crisis that stopped and PRD was the new one to take place in the government system.

Another affection was the peso devaluation, after the crisis, like in 1990, the cost per dollar was of $3.5 pesos, after the crisis the value per dollar was of almost $8 pesos, more than a 100% of the initial value.

The economy in Mexico is a free market economy

and it is the second largest in Latin America, with

Brazil ranked number one. Economic activity is

showing signs of recovery with the new structural

reforms passed by congress. Economic growth is

projected at a 2.5 percent this year.

Even though the country is showing signs of recovery

from the downfall it had in the past years, they still

have an outstanding debt of $15.16 billion dollars to the

U.S.

Mexico. (n.d.). Retrieved March 9, 2015, from

http://www.worldbank.org/en/country/mexico/overview#2

Inflation rate

Labor participation rate

In Mexico the labor Participation rate got to 73.40 percent of people looking for a job, for the majority of the people that did it in that year, men.

Mexico's inflation had increased in a big way at the end of the 80, reaching 179% of inflation rate. By 1993 the government could reduce the inflation to 7%, but at the beginning of 1995, this went back to a two digit number.

Compared that information with the data of women looking for a job almost stayed in 36 in the two years both 1993 and 1994 with a difference of 0.20 percent. As shown in the charts

Inflation rate per year