Charging ahead.Consumer credit in Mexico grew just shy of 50% to hit US$23.30 billion during the first quarter of 2005, compared with the same period a year earlier, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the Central Bank of Mexico The Bank of Mexico (Spanish: Banco de México), abbreviated BdeM or Banxico, is Mexico's central bank and lender of last resort. Banco de México is autonomous in exercising its functions. . Competition among the country's banks to lend, coupled with healthy consumer confidence in the economy, has been driving the credit boom, says Hector Chavez, an economist at Santander Investments in Mexico City Mexico City Spanish Ciudad de México City (pop., 2000: city, 8,605,239; 2003 metro. area est., 18,660,000), capital of Mexico. Located at an elevation of 7,350 ft (2,240 m), it is officially coterminous with the Federal District, which occupies 571 sq mi . Mexico's credit market has historically been thin, and many of the country's banks are noticing room to grow. "Smaller banks want to compete also," says Chavez. Expansionary monetary policy Expansionary monetary policy is monetary policy that seeks to increase the size of the money supply. In most nations, monetary policy is controlled by either a central bank or a finance ministry. earlier this year also helped. "Interest rates were historically low," he says. Demand for consumer goods consumer goods Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and has been a shot in the arm for Mexico, offsetting a declining manufacturing sector. The service sector, which includes industries like tourism, added 209,000 new jobs in the 12 months ending April 2005, far more than the 5,000 jobs lost in the manufacturing sector. [GRAPHIC OMITTED] |
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