Thursday, October 29, 2015

Is Consumption a Long Lasting Driver of Mexico’s Growth?

Will Mexican Consumers Keep Spending?
Article published by the Inter-American Dialogue
(October 28, 2015)

 Household consumption is the largest component of GDP since it represents a little more than two thirds of domestic production. Thus, changes in its behavior can have strong impacts on growth. However, propelling growth by stimulating consumption through expansionary policies is only transitory. To promote sustainable growth and consequently create permanent and high-quality jobs, an economy requires to increase the accumulation of capital through fixed investment.


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