Public Disclosure Authorized
|REPORTS DESKI
WITHIN
RE ST RI CT E D
I
A ,iav
I ONE VWE.-
%IL
Re po r 1
A
INTERNATIONAL
BANK
FOR
RECONSTRUCTION
AND
Public Disclosure Authorized
MEXICO
August 12,. 1960
Department of Cperations
LA
WH9
DEVELOPrViEN T
CURRENT ECONOMIC POSITION AND PROSPECTS
TV
l ,'
o.
This report was prepared for use within the Bank. It must not be published nor
may it be quoted as representing the Bank's views. The Bcmk assumes no
respcnsibility for the accuracy or completeness of the contents of the report.
I
Public Disclosure Authorized
Public Disclosure Authorized
I RETURN TO I
L
1trn
jJA
I-
CURRENCY EQUIVALENTS
1 U.S. $
1 Peso
1 millions Pesss -
12.49 Pesos
8 U.S. cents
$80;000
TABLE OF CONTENTS
PAGE
BASIC DATA
CHART "A"
ii
CHART "B"
iii
SUNIVARY AND CONCLUSIONS
CHAPTER I
r.1-PTTrP
TT
iv-v
MEXICO'S ECONOMIC GROWTH SINCE 1939
1
Basic Facts
Fac.torc8 Hnre1ring the (rowth of the
Mexican Economy
flbiny'cteristics of the Me.ican
conomnr
1
WrG0xmnTvTTr
nM47TTnP?MjrT
10957-1959
1
4
A
Output ad In
6
Money, Credit and Prices
The Public Sector
The Balance of Payments
7
10
14
CHAPTER III
THE EXTERNAL PUBLIC DEBT
16
CHAPTER IV
LONG-TERM FROSPECTS
17
APPENDIK "A"l
CURRENT FOREIGN EXCHANGE EARNINGS AND
PRuUjETIOhNS run ±970
APPENDIX "iBi"
DEBT Sa2VICE RATIOS
STAr ISTICAL APPFiDIX
i
BASIC DATA
Area:
760,000 square miles
Population (1959):
33.3 million
Rate of growth (1940-1959):
2.8o
Population in agriculture (1958): 58%
(1940): 65%
Uzoss National Product (1959):
Pesos 122 billion
Real rate of growth since 1939: 5.6% per yr.
Per capita income: US% 320 equivalent
Gross fixed investment, 1958: 15.2% of UNP
of which private
9.5% of 3NP
official
Origin of Gross National Product, 1959:
Balance of Payments,
5.7% of GNP
Agriculture
MIining, includsing petroleum
Manufacturing & construction
Services
1959 (million US,o)
Current Accouznt
3n
I
754
owhichexports
tourism -nd border trnde
imports and service payments
Capital Account
long-term private capital
long-term official capital
short-term capital
703
1,487
209
Net Errors and Omissions
_ 127
T37
70
7
52
Changes in Official Reserves
Government Finance, 1L959 (millions of pesos)
t?nl
WoAor,q
.i
0
Federal Expenditures
Deict
L
9,758
-
Public Investment
Federal
Other Public Sector
Money Supply, Prices and Reserves
lioney supply
December
9L797 (Ubllions of
Whiolesale Prces, 1954 = 100
Foreign Exchange Reserves, December 1959
Externa:l Public Debt Outstanding,
I'D
436V
7,130
3,138
3,992
1,446
5esos)
-
up 15o since
December 1958
131.6 (December 1959)
US$P 408 million
June 1959 (millions of US$)
Total
US Government Loans
IBEw
Other
Private Bank and Supplier
Credits
774
T7
171
96
229
22%
7%
28%
43%
MEXICO
CHART A
GROSS NATIONAL PRODUCT
60
(IN REAL_TERMS)_
_
_
(BILLIONS OF 1950 PESOS)
40[
+_
+
301
Ie
~~~~-COMPOuUND
_
2000
_
_
_
f
RArE OF GROWTH:
6% PER YEAR
II
[ PEFR CAPITA G.N.P
_
R
_
OFI G
(IN REAL TERMS)
(1950 PEOS
__10
0
|ATE
0
1
V
600
I
I
I
I
I
-_
4L
300
________
i?.
_
.!
o I
!
!
=7v
-r~COMPOUND
--
20 00
II
I
OF GROSS FIXED INVESTMENS-.
(INDEX, 1939= 100)
o
I
O
-VOLUMIE
400
OF GROWTH: 3% PER YEAR
1I
!
.
!I!I!I.
RATE OF GROWTH:
%PER YEAR
!
I
I
!
.
T
<
C1UIDDCT
'XCHtANIG
'
(MILLIONS OF U.S. DOLLARS)
_
RANDINIGIS
IOTAL
l
~~~~~~~TOTALw
) i,
~-
-
1000
_1
-
f
800[COMPOUND RATE OF GROWTH:
.\/
10% PER YEAR
IU
I
---
400 /-
.-
_-- __i
-=
1
-
-X
r</
,
MOY
> .
|2
_'~~
-B%
PER YE-F,FRVFRVI.FS;
--
300C_>;S7--
200
''
y
IO~MODITY/
XPORTS
W .XI'UKI
1
\
60
50
'39 '4U '41
1
oI
I
'42 '43 '44 '45 '46 '47
I.
||
-14% PER YEAR
11
...
I
~
1
I
I
I
_
_
=HI
I
I
_
'48 *49 '50 '5i '52
_
_
_
_
___
_
__
'53'5 '55
__
__
'56 '57
I
__
'5
'56
IBRD- Economic Staff
~
~~~~~~~~~
MEXICO
CHART B
-~~~~~~~
GROSS NATIONAL PRODUCT, MONEY SUPPLY,
AND NHOLESALE PRICES
(MILLIONS OF PESOS)
20,000 1
I
(INDEX, 1939
1
I
I
1
I
I
1
I
I
IOO)
I
MONEY SUPPLY,",I
10.0
0
(*
8',000
1
Left scale)
_
6,000
{
4,000
|L4X000 =_
______I
j
_
4
<
WQEA'400
WHOLESALE
PRICES
~~(Right scale -~)-
_r~
L.41
3 3,000
000
I
!000
i-
80
I
-
/
-
~
o
ov_0
bR
_
0
600
'39 '40
30
300
E-01200
j2YO
-f
I
__
X
OF 1950 PESOS)
/__(BILLIONS
2,0000_/__
11600
-
_
OSS~~~~r-HU5
_
_
-
NAIIUNAL PRODUCTG
(IN REAL TERMS)
(I
_
- Scale-/
'
2o
1 00
-Io
__
__
_
_
_
,
60
_
'41
80
'42
'43 '44 '45
'46 '47
'48 '49 '50 '51
'52 '53 '54 '55
'56
'57 '58 '59 '60
IBRD - Economic Stoff
(R)1638|
-
iv
-
SU'MMARY AND CONCLUSIONS
During the past two decades the economy of Mexico has been ex1.
panding at the unusually rapid rate of 5.6% per year. As a result the
countrvts gross national product has trebled and, although population
growth has been fast (2.8% per year), per capita real income is now 80%
higher than in 1939. The economic growth is largely the result of official policies which have created an environment favorable to the development of the countryv 9 varied resourceso
growth has been characterized by a balanced
sectors, by a rapid rise and diversification
by an extensive program of public investment
been attended by a high degree of political
stability. The public i-vestment prograsm, wh4ch stressed irrioatisn.
transportation facilities and petroleum and electricity production led
ni
kppo- r.e
reouce ^d opre
to a bet-ter use ofJU.;1 cour.tr'
for private enterprise and for the rise of private investments.
e-c*-onomi
2.
expansion of all productive
of its in.ternational trade,
in basic facilities and has
In Mexico the State plays an important role as a direct pro3.
ducer- of gcoods and serv-ices; 't a-lso exe-t-4s a jhigb degree of direct&indirect control over all economic activities. Nevertheless, Mexico posesses a 'lar-gely free enterprise economly in whIch the price system
and private initiative are allowed to operate virtually without
Economic pianning is decentralized and carried out
interference.
official agencies, each concentrating on its particof
number
by a large
ular sphere. Investments in the puDiiC sector are coordinated by a
special commission under the Secretariat of the Presidency.
During the past three years the gross national product of
4.
Mexico rose somewhat less than in preceding years. But the growth rate
was still 4.3%. The decline was the result of the 1957 world recession
which affected volumes and prices of exports of minerals, cotton and
coffee. Between 1956 and 1959 exports of these products fell by $211
million - a decline offset in part by an increase of $125 million in
Yet the economy was able to absorb the
exports of other commodities.
impact of unfavorable external factors and to continue its expansion.
The flexibility of the economy is also revealed by the fact that as the
international cotton market deteriorated, some cotton land was devoted
to corn raising with the result that in 1959 corn imports were reduced
to US$3 million as against US$48 million in 1958.
Price stability has been maintained since 1957. During the
5.
last two months of 1959, however, the money supply, which for several
years had risen in line with production and trade needs, expanded suddenly so that the total rise for the year amounted to over 15%. The
expansion was in part due to an unusually large corn crop requiring
substantial official purchases at price support levels. The disposal
of official stocks within the country and abroad will provide the means
for a partial offsetting of the expansion.
6,~~L
Ir, te
la-st th;-fee yeasrs thI'e
Feder-al buugeu .u5tU_
clos wv substantial deficits, which in 1958 reached a peak of 956 million pesos, equivalent
to abut 7% of tlhe money supply at the beginning of that year. To a lar,e
extent they resulted from exteneive subsidies to states, municipalities and
public bodies and from the ned' to supplement tn
he reso-uarces of autonomou;S
enterprises. The financial requirements of these enterprises are traceable
in part to government policies which have forced them to sell their output
or services at low prices. This has been particularly true of the national
rai±lroads, and the rural facilities of the electric power commission (CF-3).
The 1959 fiscal deficit was considerably smaller than that of 1958, the
reduction being accomplished by lower subsidy payments to autonomous agencies
and political subdivisions and an improvement in the financial situation of
some of the state enterprises, particularly Pemex. On the whole the budget
deficits have not led to serious inflationary consequences because of conpensatory measures by the Central Bank.
7.
Following price declines in major export commodities the external
position of M4exico during 1957 and 1958 suffered some deterioration which
led to capital flights and losses of official reserves. For the first time
in many years current account receipts declined - while imports increased
in 1957 and stayed high in 1958.
Balance was restored in 1959 when current
account receipts increased (5.6%) and imports were reduced mainly by cuts in
the foreign purchases of official agencies. The turn in the balance of
payments dispelled devaluation fears and the flow of private short and longterm capital into Mexico increased.
During 1959 Bank of Mexico reserves
rose by US$52 million, and at the end of the year stood at US$408 million
equivalent to five months of imports.
8.
The external public debt of Pl'exico amounted to US$774 million as
of June 1959.
During the second half of 1959 and early 196O Mexico resorted
to heavy external borrowing to finance capital investment and to avoid
pressure oni the balance of ayme.nts; some of the borrowing was shor. term.
Government officials have indicated that future borrowing will be limited
to longer t;er.m maturiti+es.
95
The blirden of Mexico'S outstanding et.er,nl
about 11.5% of current foreign exchange earnings.
of t…he country'r
foreign
-han
n
the
}de-bt.
at
present
is
With the expected growth
ra
decline
of
-e-Je
payments over the next few years, the burden on the balance of payments of
e:Yisti-g Aebt -4.1
soon declin
to
moderA-
1ev1e.
But 4n -rew
of. the
magnitude of Mexico's probable need to obtain external financing to sustain
the highn.rat~e owf economic grovwth 4to wich Mexico 1s been accust omeA, 4t is
important that new borrowing be predominantly long-term and used only to
f,i1Jnance high-SI1pr.iorit
'J.
y
proJectJs.
I.
MEXICOIS ECONOMIC GROWIH SINCE 1939
Basic Facts (Tables 3 and
4)
1.
During the past two decades the gross national product of
Mexico has been extDandine at an average comDound rate of 5.6% Der vear.
This rapid rate of growth has resulted in a trebling of the total
supply of goods and servicres and in an increase of neArly 80% in per
capita output -- although population increased from 19 million in 1940
to more than 33 million in 1959-.
2e
The grnwth o-f' C(NP in real terms has hn
very s-tPnrad
uneven. There was a minor interruption in the upward trend in
year (1953). Between 1939 and the end of the Second WTorld War
increased at the rate of 7.7% per year; between 194w5 and 1950
of' groT.,*h slok,ed doik,b+
si
r
ll-A 5.54
per year =
nlthough
only one
real GNP
the rate
well above the
rate of population growth, which during the past twenty years averaged
2.8% per year. Duing the decade ended i«n 1959 the rate of economic
growth was slightly higher (5.6%); total output increased by 53% and
per eGapitan output h-y- nearl-y 2(0%
J.10I Q%UOVJ%JL1ZLL
6L
WU
U.Z. L,
i
I- 1tfJ-Lt±CtI±
UL
1g
I.lcli LA:Me11
L.J.LU6.U~I
about through a fuller use of the country's potentially large physical
resourUces and. thr
ughof
policies w
ch
hv created Las-c conditions and a climate favorable to economic development.
ractors
Balanced
unuerlying tbne 'irowtn OI tne Plexican lconomy
xcpansion oI Productive Sectors (Tables 5 t o 9)
4.
A characteristic of Mexicols economic growth has been the
balanced expansion of the various productive sectors, as exemplified
si the simu.t aLneous rise of agricultural ana manulacturing outpuT.
by
avoiding the tendency to push industrialization beyond its current economic
possibilities, Mvexico has succeeded in attaining a reasonable balance in
the expansion of all
its economic sectors.
Industrialization in Mexico
has been accompanied by a steady expansion and diversL fication of output
in the agricultural sector which has supplied an increasing volume of rawT
materials for industry and, as agricultural income rose, provided markets
for the expanding output of the manufacturing sector. Between 1939 and
1959 agricuLtural output in general rose by 223% while production of
industrial raw materials expanded twice as fast.. The volume of industrial
production experienced on the average an expansion similar to that of the
agricultural sector as a whole (225%). Comparable growth occurred in the
cattle raising and fisheries'
industries.
In terms of shares of GNP
manufacturing accounted in 1959 for 25% of the total as against 22% for
agriculture --
although agriculture still
absorbed approximately 58% of
- 2 the country's active population as against 16% for manufacturing and 26%
for the serNice industries.
Integration with the International Economy (Tables 10, 11 and 23)
5.
Mexico's economic growth has been associated with a rapid expansion
of its international trade in commodities and services. This development has
been facilitated by the growing diversification of Mexican output, by the
country's ability to adapt itself to changes in external demand and, in the
case of some commodities, by the country's physical proximity to the US
markets, off'ering constant export opportunities which iLexican entrepreneurs
have been willing and able to exploit. In turn, the expansion of international trade has greatly facilitated the industrialization of the country by
providing the means to import the required capital equipment and increasinely large volumes of the many raw materials and semi-finished goods which make
possible the degree of diversification a'itained, The f2et that the coiintrv's
development has occurred without transfer restrictions induced an important
flow of privrate foreign investments and cre±ated fa rorable condictionq fnr
obtaining capital from official sources abroad. Gn two occasions (1949 and
1954) the couantr- ran into balance of payments difficulties and had to resort
to currency devaluation to restore equilibrium.
6.
Notwithstanding the extraordinary growth and diversification of
the
eiecan output, the economy is more closely integated with the world
economy than it was twenty years ago. Imports, which in 1939 represented
CY- ofP goss nat-ionXal produclt, am,ount r.ow tuo near-ly 14f
axO's of corfiodities and services, which are now nearly equally important as foreign
exchange eariners, Jointly represent approximately 15%/ of GNP. Since 1939
commodity exports have expanded at an average compound rate of 10.4% per year.
Part of the growth in the dollar value of exports is, of course, accounted
by the general tendency of prices to rise. A rough adjustment of dollar
exports, using the index of US import prices, would seem to indicate that
the expansion in the volume of exports may have been close to 5%0 per year -or a little
less than half of the total. In any case, the dollar value of
Mexican exports rose faster than world trade and represented, on the average,
a constant share of the US market w'nich accounts for 75% of hexican international trade. Receipts from services -- mainly tourism and remittances of
riexican workers seasonally employed in the US (braceros) -- expanded even.
more rapidly (nearly 12% per year), and rose from about 4% of GNP in 1939 to
over 7ro in 1959.
7.
The growth of exports has been greatly helped by development of
new export lines. In 1959 the most important single export item (cotton)
accounted for 28% of total exports; none of the other major export commodities (coffee, copper, lead, zinc and petroleum) represented much more than
5% of total exports. Minor exports include a large variety of new products
such as shrimp, tomatoes, sugar, live cattle and meat, sulphur and numerous
manufactures, as well as some old products such as henequen. They represented over 455%of total exports in 1959, as compared with only 25% of total
exports in 1956. The increase in these exports compensated partly for the
drop in exports which took place in some of the major commodities.
Public Investments in Basic Facilities and Industries (Tables 4 and 19)
8.
An extensive program of public investments. absorbing about
6,'.
of GNP since 1950 helped to create conditions conducive to the expansion arddiversification of output of the past twenty years. The
effectiveness of this investment program has been enhanced by concentratinig
investment expenditures in economic overhead facilities and basic industries.
The bulk of expenditures has been directed to transportation, electric
energy, fuels and irrigation. The network of paved roads increased from
9000 km in 1939 to 32,000 km in 1959, and electric power capacity installed
from 0.7 million kw to 2.5 million kw.
Reflecting increased investments
in this twenty year period crude oil output rose from 6.8 million cubic
meters to 15-8 million cubhic mneters..
Public irri tion pronects hrouipit.
into intensive production over 2.6 million hectares of agricultural land
which now accounts for 1.0 to 5tt, of total farm output_
9.
The flow of public in.vestments as accom..panied byar
craAuinl
rise of private investment from about 6% of GNP in 1939/45 to nearly 10/;
of (1NTP
in
-?r,rnn+. IrenVay
A
hzirn-v ,rv,
raw
rr;te
+
nv-^vA4
+-z.cbcv
is not available but it is well known that residential construction and
outlays for i-Al+trial plant and eqaupment accont for rmost of suchL investments.
Political Stability
10.
The period of rapid growth of the l"lexican economy coincides with
the effective political stabilization of the country.
Until somne Thirty
years ago, Mexican history was one of economic stagnation, turmoil and
political -unrest. The 1910 Revolution which ended the long regime of
Porfirio Diaz placed a high priority on economic improvement, but progress
toward achi'evement oI the objective had to wait for the pacification of
the country -- which did not come until the late twenties.
Under Presictent
C-alles (
a tart towards economic development was made.
Basic
reforms adopted includecl the reorganization of the banking system and the
creation of the Bank of Mexico in 1925 and, later on, of several official
banks for agricultural credit. The Nacional Financiera was established in
1934, and although its assigned functions were stated broadly (acting as a
fiscal agent of the government, creating a market for securitiesand organizing
and administering all kinds of business enterprises) its most important role
was to assist in the financinig of industrial enterprises.
Irrigation w)rks
and road building programs were also begun in the l9201s.
But the economic
transformation of the country did not acquire momentum until after 1935 when
Cardenas became President and pushed forward large programs of public works
and emphasized industrialization.
The practice of preparing six year public
investment programs was then initiated; it has been continued ever since.
Three decades of internal peace, stable government and sustained policias of
economic promotion have created social and economic conditions under whiLch
material progress is rapidly taking place.
-
Characterist;icso4f
11,
zvvitscl
+4-e
Te
vo
vlt_o.p
4
-
+1,th
Vi4
of
,,,
4-
le-Aicto
4l-aio
-- in
4
--
the state in order to achieve the aims of the 1910 Revolution became
Uthe p1la
U
'rorL,Y
l
J1iuI
of.
UVeVeLVpUIIentI.
a±ILI: lUo
LT:e
the
L-fVuLtULJ.Oin,
never formlly defined, have come to be interpreted in terms of economic
-a
_i
Uevelopment
and it
onu-rinues to play a
Ifie
rOvaue
large
I
rule
-
_ _ 1~ .__T co-
as
UdIrett:
_-
I
_ _
producteu
__n_____n__
exerts a high degree of direct and indirect control over all
econoiiuc act'i
UvitlieS.
12.
As direct producer the State controis and operates a iarge
number of commercial enterprises.
In addition to petroleum and petroleum
refining which are State monopolies, other basic economic activities of the
State include the production of electricity, the operation of railroads
and a number of industries including coal mining, sugar refining, steel
manufacture and paper production.
Altogether the various commercial and
industrial enterprises employ over 150,000 persons, or 3.5% of the gain-fully occupied population in all activities Oxcept agriculture. The
combined gross value of the normal output of these enterprises is close
to 8 billion pesos; their value added may well represent 5% of the country's
GNP.
13.
Government credit plays a very important role in the control and
direction of the economy. The Banco de IMexico exercises over-all control
of credit and a number of official banks grant credit to special sectors
and industries.
Of the total of 31.0 billion pesos of bank credit outstanding as of the end of 1959, 12.1 billion pesos (3w/-) was accounted for
by these institutions, of wJhich Nacional Financiera is by far the most
important.
Nacional Financiera obtains its resources from the central
bank, from credits abroad and from the issue and sale of securities in
Mexico, and uses them,to finance theestablishment of new industries or
the exnansion of existing ones
As of December l958 total financing by
Nacional Financiera amounted to 8.9 billion pesos, of which 49%o had been
directed to transDort. irriaation and electric power. and 51% to such
industries as petroleum,
fertilizers.
chemicals.
steel, cement,
cellulose and paper, textiles,
etc.
114
The sieclve
use of prie
Gont.ro S anrd pbhl
iG- snsihiiPs has
at various times been an important factor in the Me2ican economy. A
government agency, the Comanina RxYnortadora e Tmnnportadora (CETNSA),
maintains support prices for corn, beans and wheat and fixes minimum
retail
prce - for-bai
fodie..
Abys
sell
and stores crops
and, when necessary, imports foodstuffs. The operations of this agency
have been large
and in som.e years (a
i
15 9Oo) is
ue
of centra,1 1-1,
credit to finance them has constituted an important factor in the expansiLn1i
'J.L
lUVLI1Vy
sUpJpJLy.
ThLeI
poJ..Lcjy
of.
6AC±.sL1lUbLiie
0LJtLo.LV0
pr
odVUUcers0
or
consumers in order to maintain lower prices for certain products extends
beyond foodstuffs cons-uied by- the lower inuco me groups.
Rtes of the
national railroads and prices of petroleun products have been fixed at levels
that imply a subsidy to users and consumers. This policy forced the railroads to rely heavily on Federal support to finance their investments. The
Government also had to provide large financial resources to assist in the
financing of the capital expenditures of the Federal Electricity Commission.
There is evidence, however, that subsidy policies are being readjusted and
the operations of public enterprises gradually put on a commercial basis.
Prices of petroleum products were raised at the end of 1958 and now Pemex
is expected. to finance capital expansion without the assistance of the
Federal Government; the efficiency of the railroads is being increased and
redundant personnel gradually reduced.
15.
Notwithstanding the widespread public ownership of productive enterprises, State intervention has been largely directed to creating conditions
conducive to economic development and, except in a few cases such as petroleum
and petroleum refining and the railway transport system, production by the
State does not implv a monopolv.
16.
Although State inveqtrnents have heen extensive anrd have g'reat1v
influenced the rate and direction of economic growth, economic planning is
loose and is exerted through a large number of government agenc-es, autonomous
enterprises and official financial institutions. In the last ten years there
has been a trend townrds more centralized planning of official invesrom..ents
through a committee (Comision de Inversiones) under the Secretariat of the
Presidency. The mrin function of this co-mittee is that of coordinatin;
the
investment plans of other official agencies, establishing priorities and
fitting investml.en-ts within the over-a"l resources available; 4 was ailt
responsible for the preparation of a six year investment program for the
will be made public this year.
A Committee created in 1959, under the
cla-irmanshlip of the 1vanistry of Finance, has been charged with the task oI
coordinating the credit activities of the various official financial agencies.
A further effort towards improving the operations of the puDiic sector is being
carried out by the Secretariat of lNational Resources (Secretaria de Patrimonio
Nacional) among whose functions is that of improving the efficiency and
coordinating the activities of the widespread net of official autonomous
productive enterprises.
17.
The Mexican economy has successfully avoided certain controls which
in other countries have been widely used with unfavorable results. Thus.
M"lexico has maintained the external convertibility of its currency, has not
resorted to exchange controls and has generally allowed ample opportunity to
the operation of profit incentives. The only restrictions on imports are
tariffs and, for a specific list
of commodities, licencing.
These policies
have fostered private investments and attracted a large volume of foreign
capital. Private investments have been growing in absolute and relative
terms and gaining greater importance in relation to public investments.
Private foreign investments have also expanded and their total increased,
through near investments and re-investment of profits, from US46729 million in
1952 to approximately US)1,400 million in 1959. The relative trends in public
and private investment indicate that, as the 11exican economy continues to
expand, the private sector is likely to play an increasingly larger role! in
the development of the economy, provided that the public investment will
supply the facilities necessary to support the growing flow of private
investment outlays.
ECCNO?MIC DEVELOPME4TS. 1957-1959
II.
Output and income (Tables 4 to 9)
18.
The riron in the priAes of manr ry
*p
ion&l1y traded commodi-
ties had an unfavorable impact upon the Kexican economy and was reflectedl
in
the last.l'PP thre
yesn
1oe
ora,tes of
e
ro.r^
+1i"
those+.hat had on
+
the average prevailed since 1939. In real terms the gross national product of exLco rose 3.6A in 1957; 4).
in 195 -a 4 6. ,in 1959 -a-n
an average of 5.6fo for the past twenty years.
19.
In 1957 the value of exports of major commodities (cotton,
copper~'JI,ead a,A-.zn)
US136 million, or 22%.
-as.
.. 4
4-W.
19 'I,
droppeLdby
a
.
coffee,
ld. -'.ly
While prices of major commodities have not sub-
stantially iL.pro-ved since then, exports of other co.iumnod"ties have been increasing thus offsetting the losses in traditional exports.
In addition,
oututu for domestic use continued expanding and more tha-n masde -upfor the
decline in exports.
Agriculture (Tables 6 ancd 7)
20.
Agricultural production increased during 1957 and 1958 by aboui;
A slight dcecrease (k) wnich occurred in 1959, was the
result of a curtailment of cotton cultivation and a smaller coffee crop,
reflecting the usual two-year yield cycle. in general, agricultural out-puts have been increasing by bringing new lands into production and by
improving yields through irrigation, better seeds and greater use of fer.tilizers and improved agricultural practices. Between 1955 and 1958
approximately 377,000 hectares of land were put into use by irrigation;
in addition existing irrigation works covering over 300,000 hectares were
imnproved.
0/a each year.
21.
The production of corn has been promoted and larger areas under
irrigation have been devoted to this crop. Since 1956 corn output has
increased by 3070 and in 1959 the crop exceeded consumption requirements
for the first time in many years, leaving approximately 400,000 tons for
export. Once a large importer of wheat (440,000 tons in 1952) hiexico has
been self-sufficient since 1957. Sugar cane and sugar production also
increased greatly (1.3 million tons in 1959 or 135 above 1958) creating
a problem of surpluses which the international sugar market cannot easil:;r
absorb. Efforts are being made to obtain an increase in the US import
quota from its present level of 68.000 tons to 200.000. Such an increase
in the US quota would represent approximately US$ i2.0 million in additional
foreig-n exchange receipts. The cattle raising industry has been developing
in recent years largely as a consequence of improvements in stock but
annual production depends on the amount of rainfall. During l958 and 1959
weather conditions were favorable and production increased.
In 1958 cattle
and beef exnorts to the US reachei the fimrpe of US 53 mil lion -- but
greater domestic consumption lowered the figure for 1959. The fishing
industrv has been developing rapidly uinder the influence of both domestirc
- 7-
and forei.g
Ade.-m.r.d.
Shrr..
end othrfishn
po
+vs
tongtheUjrp
US$ 41 million in 1959 as against USW 25 million in 1956, and prospects
for their lf+ther expansion are favorable provided irm.v-r restrictions
are not adopted by the United States.
kanufacturing and iMining (Tables 8 and 9)
22.
Manufacturing activities, including electricity production and
peltro'lewmi e.xtlJ--action andu
re'fir-Hng
h'ave
shoUli-wnLLV
large
;_tCLZZ
OncLease
19J7.
-Lc
The mining industry, on the other hand, was confronted by a combination
of lower prics and red-uced external dsemand for metals, wiUch influenced
unfavorably the levels of output. Sulphur production, however, remained
profitable despite reductions in prices and output reached 1.4 millin
tons in 1959 (up 75% since 1956). The production of petroleum products
VOLUWvi
OF INDUSTRIAL PRiODUCTIuN
(Annual Changes)
1957/56
1958/57
1959/58
(% changes in Physical output)
All Industries
Hining
Petroleum
Electric Energy
Construction
Manufacturing
+
+
+
+
+
+
11.2
6.5
12.7
8.0
10.6
11.8
+
+
+
+
7.4
0.3
9.2
7.7
1.0
5.9
n.a.
+ 1.6
+16.5
+ 7.5
+ 4.5
+ 7.0
increased because of an expansion in refining capacity and the completion,
of several pipelines. Exploratior work has been intensive in recent
vears and led in 1958 to the discoverv of four new fields in the Gulf of
iviexico. Prcoven reserves of oil and gas amount to 4 billion barrels equivalent, or about 22 years production at current levels. Electric enerzv
capacity rose from 2.1 million kwi in 1956 to 2.6 million kw, an increase
of 8% per year,
ivionev. Credit and Prices (Tables 12 to 15)
23.
During the nast three years Mexico has maintained a high degree
of price stability. Between December 1957 and December 1959 wholesale
prices rose only 15L Food prices and the cost of living in the city of
i;exico show a greater increase over the same period (10% and 8% respectively) but these indices are probablyT not as repesntat1-ive.o~f thei
national
price levels as the wholesale price index, composed of 210 commodities.
24.
Underlying the stability in the price level is the fact that the
ofrthen
suppl-y ori+i
*til. rFolcetly hesApril 954 dtevaluatnte tnhe eican
of the supply of money.
Following the April 1954 devaluation of the i'iexican
- 8 peso (from 8.65 to 12.50 pesos per US dollar) money supply rose rapidly
(21%) until the end of 1955. This proved excessive, even though the
real output of goods and services increased by nearly l0b, and there
followed a rise of 14% in wholesale prices. Between 1956 and the third
quarter of 1959°, money suDply was allowed to expand only within limites
commensurate with the growth of real outnut.
However. during October andl
November of 1959 the money supply, which during the first ten months of
the year had ri en onlyv
ri6ln_
uIIdden exnrnqion which brought
ncr1 a
e
the total as of December 1959 to level approximately 15% higher than at
the end of the previous ye-ar.
Pr+.
of t.'iS
and may be cancelled during early 1960;
ofW
f
nn-irmon+ rnn or ern + n;nrn
paynentm
.
go to
esfi+hc
ince-a
the
the business community.
supply ~ th-e
~
ow
~
f
ev
financial
;
rise is
of a
cs1nnl natuivre.
also some of the redundant means
1; r-;A; +-o --P 4-;-4-I
t9
o
91
of
Vual indi
liuidity
On balance, however, the disparity between money
--f-el --- I
utu
(I4C,'- 4n 1959)
-ay lead
4to
so...
Ar,
flationary forces which would call for remedial action by the monetary
au t
4
Lhori.
25.
hne increase in tne money supply nau its origin mainly in Lne
public sector. Although during 1957 and 1958 the money supply increased
by o00 miiion pesos and 850 million pesos respectively (89%per year), means
of payment available to the public sector increased considerably more. Their
URIGIN OF UL £*iLhONE
SUPPLY, 1957-1959
(In millions of Mexican pesos)
Total Increase
External origin (gold, silver and
foreign exchange)
Private Sector
Public Sector
Other
/
1957
1958
800
856
-183
-104
928
159
-741
130
1,478
- 10
L5
1889L
-
961
6
880
54
Refers to the period November 1958 to November 1959. The
increase for the 12 months of 1959 was 2,060 pesos.
effect on the economy was, however, moderated, particularly during 1958 by
losses of gold and foreign exchange reserves resulting from balance of payrents deficits. During 1959, on the other hand, the balance of payments was
positive and added its expansionarv effects to those of the public sector.
In 1957, 1958 and 1959 the private sector was not an important contributor
to the expansion of the money supnlv.
26.
Thp follwrinn
ta,ble smm=rizes the contrih+ions nf the Rnvnk o,f
lviexico and of the commercial deposits and savings banks to the changes in
money supply since 1957.
The large increase in money supply during 1959
-9-Jalin
-106.i
eraei
res-ullted f'roml centr-a` barzIl cred-it to
pesos) and from increases in gold and foreign exchange holdings (874
million pesosj. ine comme-rcial oanKs! contribution, also hUportatL,
resulted from purchases of Government securities (600 million pesos),
an increase in private foreign excnange deposits (425 ±ilu-ln peousj
and credits to the private sector (486 million pesos). To compensate
in part these expansionary items the Bank of Mexico soid private and
government securities (1,271 million pesos).
MAIN OPERATIONS OF THE BANK
?FMEXlCO
AND OF DEPOSITS AND SAVINGS BANES, 1957-1959
(In millions of i4exican pesos)
1958
800
856
1,88Q
423
201
1,371
129
-139
-511
164
- 60
-597
486
-231
425
Total Increase in Money Supply
Deposits and Savings Banks
Credit to Private Sector
Private Savings and Time Deposits
Private Foreign Exchange Deposits
47
6010
- 17
322
196
202
87
380
655
518
432
-435
986
501
644
1,058
-836+
-347
-1,063
874
2o6
-32o6
235
270
Government Securities
Securities of Government Banks
Gold and Foreign Exchange
Interbank Operations
164
226
Bank of Mexico
37
Securities
Feder--!
262
9n
- 70
Interbank Operations
-
Z/
27.
cco--n.t
'A
Credit to Government Banks
Goverv1mevn Secl
s
Gold and Foreign Exchange
Source:
directle
26
Goverrmen..t Checking
1959 LI
1957
Nl
iiI
I
I u
I
L
. 7.X 7 r
L
Table 12, Statistical Appendix.
66
v 'I[Lb
e
7.)
*u
Over the past few years central bank credit has been largely
't-o
fi.L1dA;t
ce_CL.U10
In
ofLAofica
UheI.era-W.L
ar-s (a CLL l.,).
In
15
and 1959 these credits experienced a considerable expansion. The main
-L
w
beneficiary in 'oth years was the Danco Nacuional de Comercio 1E&
used the resources largely to finance the price support operations of
During 1958 the main expenditures were for purchrases of corn and
CE1lMSA.
wheat at official support prices, although many other products (rice, beans,
eggs, milk, wheat flour, etc.) were also bought. Tne large corn crop of'
1959 explains the increase in credits in that year.
9±
Nacional Financiera which since 1956 had not resorted to central
28.
bank crudit except for smarll amounts, received appro-dk'otl'y 294 ml.1o n
pesos in 1959.
The main monetary policy measures adopted by the Bank of Mexico
29.
during 1959 pertained to deposits in foreign currencies and to commercia:L
bank reserves. In order to assure adequate reserves against foreign
currency deposits and to slow down the growth of these deposits, private
financial companies receiving them were ordered early in 1959 to transfer
to the Bank of Mvexico further increases in their holding of foreign exchange
deposits. In July 1959, reserve requirements on new deposits of commercial
banks were reduced with a view to facilitate the financing of the sugar
industry and of the agricultural and cattle raising sectors in general.
The Public Sector
The Federal budget has in recent years accounted for approximately
30.
44% of all expenditures of the public sector. The combined expenditures
of autonomous agencies and state enterprises are next in importance (41$);
among them Pemex and the national railway system account for nearly two
The Federal District, the States and Territories and Municipalities
thirds.
account for the balance of 15%.
The Federal Budget (Tables 16 and 17)
During the past three years the operations of the Federal Govern31.
ment have resulted in substantial deficits. In 1958 the deficit reached a
peak of 956 million pesos. equivalent to 7.2% of the money supply. In 1959
revenues increased by 6% while expenditures remained at the level of the
As a result the 1959 deficit was reduced to 436 million
previous year.
pesos, or 2.8% of the money supply outstanding at the end of the year. The
basic cause of the fiscal deficits has been the fact that revenues have not
From 1955 on Federal revenues have every
kept pace with the rise of GNP.
year represented a smaller pronortion of the country's gross national prDduct,
declining from 8.5% in 1955 to 7.7% in 1959.
An important factor in the absolute rise of Federal expenditures
Consumption subsidies
-rowth and tax exemptions.
of subsidies
benefitting sugar, petroleum products, alcohol, railway transport and other
comimodities, toget-her with tax exemptions and rebates of specific taxes (for
new industries, on imports of industrial raw materials and equipment, and on
export commodities) increased from 1 S% of total Federtal expenditures in 1954
A substantial reduction in subsidies occurred in 1959.
to about 24% in 1958.
32.
has been the
Certain autonomous enterprises (railroads, Pemex, Federal Electricity
in
prices resul+i
aintained for their products or seces
revenues which were not sufficient to contribute adequately to new investment.
Thus these enterprises had to resort to external and inrternal credit and, al'
The
except Pemex, had to rely on Federal aid to finance capital expansion.
ra-itude of the Federal aid given towards finrancing of investrMents by these
33.
Comm-ission)
11
-
-
enterprises and their use of domestic and external credit during the period
1953=195~ is shown. below.
'-C'
NTfl& OFOW.
T
J.
.JMMLV'
.LJ '"J
WI
'DV MA TnO
AT
rPnvMfRUT1C
JJ.L ±JJU'.v
, iAJl.,U)£dJ
k+n
.J.4 V J.~AJ± j;U.LVj J.
-,N'tIDDTT@
15r1950r
res
-L.7];J-L7)_0
adludons uf Mexican pesos)
Total
Investment
1953-58
Current
Income
Financing
Federal
Credit
Aid
External
DomestilC
Federal Electricity
Commission
ivyeoican Railroad
L,933
71
107
11
1,440
41
2,903
6,658
1,216
4,028
697
---
379
56
42
-
Mexican National
Railways
Pemex
Source:
955
2,004
35
626
Table 20
Public Investments (Tables 19 to 21)
34.
That fiscal resources were too small to finance the program of
investments of the public sector is shown by a comparison of the size of
these investments with the volume of public savings.
Between 1955 and
1958 savings of the Federal Government deClined from 2,658 million pesos
to 1.999 million. They increased sharply in 1959 as a result of a reduction
in transfer payments
--
mainly subsidies - but even so their level in
that
year was only sliehtly higher than in 1955.
In 1955 and 1956 investments
by the Federal Government were kept at a low level so that both years
showed surpluses.
Since 1957, however, Federal investments have exceeded
savings.
In the rest of the public sector savings have consistently been
insufficient to finance investments.
For the public sector as a whole lthe
deficiency reached a maximum in 1957 (41.5% of total investments), declining
thereafter to 28.1% in l959.
As was shown in the analysis of monet-rv
developments these deficits were not reflected in comparable expansions of
the money supply because of adiustments in the availability of -esO¶2rces of
other sectors and also because a large part of the deficit of the public sector
was financed by external borrowing.
35..
Notfithstan+ding the far-Gt. tha+. t.hp rnsoceiiy'pQ ailab1le for
pbhl:Lc
investment were supplemented by large sums obtained from foreign and
domestic borroing, publ4c investment hs not sho-w, at least s;nce 1950,
a tendency to increase as a percentage of GNP -- the ratio having remained
stable at around 5r%t+o 6%.
In proportion to to+al gross investments,
public investment has tended to decline, since private investrments have
- 12 gradually increased from 7.7% of GNP in 1950 to 9.5% in 1959.
public investments represent a high proportion of the total.
However,
SAVINIGS AND INVESTIMVEUS
OF THE PUBLIC SECTOR. 1952-1959..
(In millions of Mexican pesos)
l966
1956
1957
Inxrestm.nts
10Q01
2,174
2716A
9
Savings
Deficit (_ or Surplus
11
p_U
2,658
2,563
2,332
1,999
2,702
A5
a,,,
fi_
107
I.
- 1o01
95
- <A
09
_}: ).14vF
320
3,561
3,9920r)%l
T1958
l9r9
Federal Governmpn+.
R est o f Pdb1iJ
Sector
Invest.m.ents~~~~~~~~r?
2,67
949
Savings
_r% :'el
.I A..
AJ
29 Ql,'A
^
2,7,7
1,275
enn.
-L73Q
-j4
~
U
nn
2
1,140 1,556
nL
-2 090
1-2005
2,420
n
-±
rrso
lobal P-ul.iC Secwor
Investments
Savings
Deficit
4,660
5,946
)4,933 6,516 7,130
3,607 3,838 3,472 3,555 5,122
-1.053 -1.095 -. Z -z.961 -2,008
Deficit as % of total
Investments
Source:
22.6
22.2
41.5
45.5.
28.1
Table 18
36.
Public investments in Mexico have been devoted preponderantly
to facilitate the growth and distribution of physical output. Between 1953
and 1959 the bulk (83%) of investments of the public sector was for basic
development projects.
Investments not directly productive (urban and rural
services, public health, housing and education and research) absorbed only
14.1% of the total and those for purposes of administration and defense
an even smaller amount -- 2.9%.
Among investments for basic development
purposes, agriculture
largely irrigation projects --
in earlier years
received emphasis but more recently the share of resources devoted to this
type of projects has tended to decline (10.9% in 1959).
Investment in
manufacturing and energy activities, largely electric energy, petroleum
and gas and steel production, tended to increase reaching 32.5% of the total
in 1959. Transportation and communications since 1953 absorbed between
35% and 40% of all public resources.
-
13 -
37.
The undesirable economic and financial implications of a system
in which public enterprises must depend on the Federal Budget are realized
by Mexican public officals. Recently the government has initiated measures
to improve the financial position of some of the enterprises. especially
Pemex. But the financial requirements of some State enterprises continue
to be a burden on the Rovernment's budgetary resources. Ah increase in
earnings wcould enable them to finance a larger proportion of their investments from their own resources and. in the ageregate. go a long wav toward
solving the government's financial problems.
Petroleos Mexicanos (Pemex)
38.
The operations of Pemex, the official petroleum agency, are of
snecial impnrtance
When the comrany was orgrnig,A folloHlng the expropriation of foreign concessionaries (March 1938), Pemex assumed the
obligation to npririnc t.he -v-teir.na1 debt which resulted from the pvwropriatlon,
to pay state taxes and fees and to finance foreign exchange costs of capital
expansion ouit. of nr%oeeds of expnors+ of ptoleuAm
a
petroleum produc
It was impcssible to carry out this program because of the government's
nrli5r" e-of lm +ving the " p
A- charge.
es
msm+hn+
The prices of
petroleum products charged by Pemex remained unchanged between 1939 and
1948, wI.hile the index of wholesale prices increased I6 .ff After 1948
prices of Pemex products were allowed to rise, but they always lagged
"Oe-1 -X> Il
general
prc
I eve
ecl;u.ruexs
PCr:iab-U.UUt:
LlnayW
uiiv:;n
subsidy implicit in the low prices of petroleum products amounted to
over 5w0 adu1'Lon pesus in 1957, and as much as 300 million pesos in 19j5
after prices had been adjusted.
39.
Perhaps the main drawback of the conditions under which Pemex
was forced to operate is that the company was unable to generate enough
cash from operations to undertake a sufficient volume of investments to
assure the increase in capacity required by the continued economic expansion of the country.
Although exports of petroleum and fuel oil
tended to decline after 1955 -- from 25.8 million barrels in 1955 to
11.6 million barrels in 1958 -- imports of petroleum products followed
an up_ward trend.
Heavy investments financed with foreign credits have
increased the extent to which Pemex is now able to supply the domestic
market, so that in 1959 net exports amounted to 4.7 million barrels as
against net imports of 1.5 million barrels in 1958 and 2.2 million in 1957.
40.
Steps to improve the financial position of Pemex were taken in
1958. The prices of petroleum products were raised and the sale of
Mexolina, a heavily subsidized low octane gasoline, was discontinued outside the Federal District.
During 1958 and 1959 the financial position
of Pemex improved and its liquidity position was strengthened as a result of
a new arrangement with the Government under which past ax obligations,
amounting to approximately 1.7 billion pesos, were capitalized in the form
of 99-year bonds which will carry interest at 8% a year and give Pemex the
option of redemption at any time before maturity. It has also been agreed
that in the future Pemex will pay the government a single tax in the form
-
1' =
of a percerntage levy on its gross income, payable day by day as it accrues.
For
1960
the
r,at
4
.Ls
,
j"%..A,
-i,4
on
the4L
basUsLJd.L-
oflI
VI
releaiup
ILjo
ts
of over 6,)O million pesos will yield the government about 750 million pesos
a year. L'esos 241
m.ilion
M4
a ay-L have been paid sincQ
riv ±±rs VI tJUriUziy
1960.
Table 21 shows changes in the financial position pf Pemex between
195S and 19,59.
The follo-wing sauiiery table shows the origin and use of
the additional resources available to Pemex in 1959:
ORIGIN AND USE OF NraW RESOURCES
PENEX, 1959
Origin
Profits
Increase in depreciation
reserves
Increases in special
reserves
Increase in Capital
Total:
40
882
741
1,764
Increase in current
assets
393
Increase in fixed assets 1,605
Reduction in current
liabilities
180
Reduction in long-term
debt
1,256
Change in deferred charges - 7
3,427
Total:
3,427
Other _iajor Autonomous Agencies
41.
The financial situation and the results of the operations of
other important agencies receiving government support are not easily as-certainable.
Published financial statements of the Ferrocarriles Nacionales
show substantial losses. Yet other information (Table 20) indicates that
a larRe nronortion of the investments of the Ferrocarriles Nacionales Was
apparently financed out of current income.
Other discrepancies explaitable
by differences in accounting procedure are apparent in the case of other
autonomous enterprises.
This situation will be corrected as soon as the
Ministry of National Resources puts into use a uniform system of financial
reporting idhich is now being organized.
The Balance of Payments (Table 23)
42.
Since 1945 the current account of the balance of external payments
nf Me.xien hash sholwn sirpln1ies:s: onlyr in
1949 ariAd 1950 (nf+.er +.ha
evaluation
of the national currency from 4.86 pesos to 8.65 pesos per dollar) and again
in
1955,
fr-Olnri.g +.he scjore.dA
de
l,tion to 12
I-").
KA
peo
vsl.
per
During 1956, 1957 and 1958 the current account deficits again tended to in-
net reserves of the Bank of Mexico, which had reached a total of US$469 million
b.y
the
er, 0± 4f 1J67.
declined
41thereaftler
to
of
Tv'"$e3"6
b-y nDecembiler
of'
~1958.UU
.L7J0,
UV~.A..L1IV~±
L.IIVL V~± bV±
LA.) a "lowv
.LOW
0±
tJLJW.))U llon
W±.L.L±IJIi L),y ~VI.~VIIIUVL
of 1958.
15 -
-
The loss in official reserves (US%28 million ih 1957 and US$ 87
43.
million in .1958). which appeared to follow the pattern preceding the two
previous devdluations, led to fears of a new one.
A flight of short-term
capital set in and losses on this account amounted to US$91 million in 1958.
L4.
The deterioration in ti-balance of Davments can be ascribed to
drops in export earnings due to declining prices of the most important
primary commodities exported by Mexico (cotton. coffee, copper, lead, Zinlc,
sulphur and petroleum), and to a failure of imports to become adjusted to
The reduction in rece:Lpts
the new lower levels of exchange availabilities.
from major exports (from US$605 million to US$400 million in
1958),
compen-
sated bv increases in exnorts of other commodities (from US$202 to US$309
Tourist receipts increased sharply in 1957 (16%); were affected
millionr5 .
by the US eronnomic recession only in 1Q95 but later on continued their
Still total current receipts
extraordinarily high long-termi rate of growth.
declined in 19Q7 and 19538 for the first. time in many years.
D1ni-pincg i959 +.he =Y+a-ernm1
J5.
f,4Y-nnrjl poiinof
MP-xGo greatlyv
recovered. The current account deficit was reduced to US$29.7 million anid
the Ban- of Mexico
emproved its ne+ resezve posriton hyr HSp51
million, to
a total of US$408 million. Devaluation fears were allayed and short-term
caital
n
.m.ve.ear.ts
becme
kn.n
'Ther=n,.
poi4-ve.
eleomer.t acco rnting
4
n
forvv
+he'
upturn in the financial situation are the recovery in tourist receipts and
a substani.a.
cJ
in-- mport -
.ad
e
by the greater pro,uc-ton of corn
and petroleum products which reduced import needs, and by a reduction in
Savings in this gAp
officiLual purihases aroaud, mainly by the ral.roads!
items
so that internal
of
other
normal
imports
permitted
of commodities
not
affected.
were
econonuc activities
MAiN'
REDUCTIONS IN EV1PRTS. 1958-i959
(In millions of Mexican pesos)
Value of imports
1957
1958
Corn
Railroad Equipment
Petroleum Products
Electrical Equipment and Parts
Other Commodities
Total Imports
Change
-45.0
48.0
3.0
31.3
44.6
20.4
984.3
8.2
28.7
11.5
955.2
-23.1
-15.9
- 8.9
-29.1
1,128.6
1,006.6
-122.0
46.
The flow of long-term foreign private investments which slowed
down in 1958, continued in 1959 its rapid rate of growth. New investments
and re-investments of profits of foreign enterprises represented USU.33
million in 1959. Total foreign private investments in Mexico may be
estimated at US$1,400 million - up 45% since 1954.
- 16 III.
THE EXTERNAL PUBLIC DEBT (Table 1)
L7.
As of the end of June 1959 the total external public debt of
Over one third
Mexico was estimated to amount to US$774 million equivalent.
of it (US$977 millionn) consisted of US Government loans, including the
IBRD loans (US$171 million) represented about 22%; publicly
Eximbank,
issued bondks an-d
ti-n l-tion
and other cla ims 12% (US 95 mi *i on)
Private barnk and supplier credits accounted for the balance of US$230 million,
or 3'AM.
Servnce payments for 1959 amoni.id to UIS$15 millionn
'-I'-'.
195.l
Between.LS
anA 1957
7o -- the increase being
pri-vate' bar'-, cauX suFPpLql-
the
Me-car
deb
public%
exverl
e
only
accounted by IBRD loans and to a small extent by
LI
erre-ts.
A%"
othu_
%c6Le6ri-res of
debt
"declin1-4ed
substantially. In 1959 the debt increased appreciably when Government
supplier credits
ag6enLies began to resortl, e)lxltensvely to prvivae bankv ad
49.
During the second half of 1959 and early 1960 Mexico rsvorted to
heavy external public borrowing. Preliminary information indicates that the
new credits< contracted during this period amount to approximately US$35C
At the present time the total external debt of Mexico is in the
million.
neighborhood of one bill-ion dollars, or the equivalent of two thirds oI
The debt recently assumed includes some shortcurrent exchange earnings.
term loans.. Government officials have expressed, however, that future
borrowing f'rom private sources will be for medium and longer term periods
and that some of the outstanding short-term obligations may be refinanced.
The breakdown of recent borrowing by maturities is as follows
Less than 3 years
Up to 6 years
Up to 8 years
Over 10 years
US$ 42
US$ 32
US$
7
US$ 270
million
million
million
million
US$ 351 million
TOTAL:
The terms of the most recent loan (US$100 million), granted by the Prudential
Tn.Surance C(O= of the United States are 15 years; with a grace period of five
Another recently
years and nominal intere!st at the rate of 6-7/8%.
assumed external obligation of US$70 million is the result of the purchase
by Nacional Financiera of the holdings of Compania Impulsora de Empresas
El ectrir
tA5
a
qnbsiidi
rv of American and Foreirin Power.
The sales contract
provides for a 6.5% rate of interest and amortization over 15 years. American
nndl Forerign Poew;r has agpreed, howeuer_ to invest the amortization nanmerits in
Therefore amortization payments
Ilexico (in enterprises other than utilities).
Likewise interest
will not constituQte a burdpn on the balance of pauments
payments on the new debt do not add their full burden to the balance of
pntrmner.t since in snme degree they take the place of rijxHidenrs payments of
Nevertheless, both interest and amort,ization
Impulsora to the parent company.
-,Qy-entas
onl the
n
de`bt
been.
brhave
tnkven ir.to
acco-int
for
the
pirnrpose of'
appraising Mexico's creditworthiness. On May 12, 1960, the Mexican govern~~~
~~~~ d 4-,
.a..,',.-I
.f
4-s
+
1
vs e,
rssA
vs
mer,t
anno,=lcJ
the
retSire-mert
ofp
art
of
thne stillo
ut'stanJpuicly- is r,k r
issued bonds of the government and of various political subdivisions and
,i+a
enCt-erprise.i,
in
an
a
o.
$
r'
Don.
A
'J.-LJ-.
;i -
iL'4Unc'e
.4-
this repayrment on the debt burden in 1960 and the following years.
mLore recen
sale
of
tLLe h1-Loldings
of'
IrAexL.g1lu
(r1M.eLcarn
JLight
CdLLI Aower
ef'ec.4.'+
o'f
The
.5td.
a corporation registered in Canada) to a Mexican group, announced early in
-
- 17 -,
June 19600
hAs not heen taken into nceoiint
the rdet2i;1
sinGe
of the onerationj
including the name of the purchaser or the precise amounts involved, havre not
been disclosed.
-Appen 1B includes, how;.ever, a cred
n;alson
ar_+
inp
for the construction of a hydroelectric plant at "El Infiernillo". The credit,
Por .L'J1
thlle
fu:Ll C.OOU
C09 of
-4
4UVJ -,.vt
to
,mi
-9
4kr7l.
r-lli
Lii
.LU..J.
V Ul.4the
IC;P.L pro-p1 V ect,IIOU, JL
U.LLl.,
07)
I..J
.-. LonJlipeso
,AJ
kW(J..-J
and is repayable over a period of 14 years at an average interest rate of
11U.L...JW1iJ
sLLr,iUJhty
QbVov
6%0.
IV.
___
O-ver the la-st 20 years, the Mexican economy nas advanced at a rate
substantially above that of population growth.
The most outstanding characterisLic ocf the growth process has been that the rise in output and productivity has not been confined to any single sector but that it has permeated the
entire economy. The production of foodstuffs and industriai products and of
services supporting agriculture and industry of the home market has expanded
rapidly;
but so have the production of goods for export and tourist services,
the most important export industry.
50.
51.
Many factors have helped to bring about this advancement of the
lexican economy. The government, unhampered by political strife or soc-'al
unrest, has stressed the promotion of industrialization and economic development but has avoided the imposition of stifling controls and has pursued
policies fostering private business initiative. The business community has
displayed a high degree of entrepreneurship and commercial skill, and tlhe industrial labor force and agricultural producers have readily adopted modern
techniques of production.
These elements have lent a high degree of
flexibility and adaptability to the Mexican economy and have brought about
a great diversification of exports.
In the last 20 years foreign exchange
earnings have increased almost sevenfold and permitted a rising level of
imports, both to satisfy consurner demand for imported goods and producers'
needs for foreign eauipment and raw materials.
Stable political conditions,
a high degree of freedom of initiative, an expanding domestic market, and the
proximity of the United States have brougiht about a large and continuoum
inflow of direct foreign investment, which in turn has helped to strengthen
and diversify the Mexican economy.
52.
In attemnting to anpraise the futuire prosnects of the Mexican
economy, account must be taken of the inbalance between public savings and
the investment needs off the public sector.
This inhnlnc-e, reslting Erom a
relative lag in the federal tax burden as compared with the growth of GNP,
and frnm largea fedeal transfe
in snuppo+ of pub,lic agencies has in the
past created inflationary pressures requiring strong action by the central
bark nuthorivies-
A c.hange 4i policies
+s +
offica1l+
,-os
etri
_that
may in the future become self-sufficient, plus a tax reform allowing the
-rovrrn-,man+
+P
,+ 4
.,
.An,&-ac,,i
zov
'. 1U.lv. to obtain an adeqLaxwe
f
sharl of
41,-a
te-
a¶ount
co
-i
-yt.y'
s
reon-,,n
to a4-
-n
i-,
o fiLnLanc
-suc
essential public investments, would offer the best possible assurances of
enhanced by the country's resource endowment and by the growing ability of
thle Me,-_can autho-1rities tuo cope effect.-ively w-01 lththe Chans.ng1r coM(,Ionis1 of
S.1Tockolers1…__
tOLOckholders have been offered a
.-
price o0
$240
4.-
A.1-½
-X
per snare of common stocK andi
$13.50 per share of preferred stock. Since the outstanding stock is
2,267,568 snares of common and 853,244 oI preferred, a controlling interest
(50%) would require the expenditure of $22.7 million. The withdrawal of all
common and preferred stock would require an expenditure of 056.9 million.
demand and production as they arise, and to pursue policies that are
conducive to further economic advancement.
Over the next ten vears the total current foreign exchange
53.
earnings of Mexico may increase at the compound rate of 4.1% per year.
This estimate, shown in detail in ApDendix A, is the result of projections
of exports of major commodities (cotton, coffee, copper, lead, zinc,
sulphl-ir and petroleum) on the basis of conditions of demand likely to
prevail over the next ten years. For other commodities and other current
accoLnt itemns overall rates of -rowt.h believed to be conservative, have
been assumed. Exports of minor commodities, which since 1939 have grown
at the rate of 12% per year, and over the past three years at 17, have
been projectled over the rnext few years as growing at an annual rate of
This figure is only sli ghtly higher than the estimated growth in
6f.
the physica:L volume of exports for the period 1939-1959 -- which probably
In the case of tourist
am.Lounted to 5% per year. (See paragraph 6).
receipts the rate of growth used in the projection (4.5%) is less than
-alf as large as that wich prevmaled since l'99. The overall result of
the projections is that Mexico's current foreign exchange receipts are
expected to rise from US$1,457 m1'llion in 1959 to about US$2,260 by 1970..
Except in 1958, 1959 and during the current year total service
54.
payments on the official foreign debt of Mexico have for a number of
years represented considerably less than lO% of current foreign exchange
Recent heavy borrowing raised the ratio to 12.3% in 1958 and 11.8%
receipts.
in 1959. Estimates for 1960 show a possible rattio of 14%. This ratio,however, includes a non-repeating outlay of 39.2 million, resulting from
If this
the retirement of part of the outstanding publicly issued bonds.
ll.5%.
of
neighborhood
the
in
is
amount is excluded the current debt burden
ratio
service
debt
the
present
at
On the basis of the debt outstanding
would eecline to about 10% in 1961; 5.6% in 1965 and 1.9% in 1970
(Appendix B).
The burden of Mexico's outstanding external debt at present is
55.
With the expected
about 11.5% of current foreign exchange earnings.
the rapid decline
and
earnings
exchange
growth of the country's foreign
on the balance
burden
the
years,
of service payments over the next fewl
levels. But
moderate
to
decline
soon
of payments of existing debt Vill
external
obtain
to
need
in view of the magnitude of Mexico's probable
Mexico
which
to
growth
financing to sustain the high rate of economic
predominantly
be
borrowing
has been accustomed, it is important that new
long-term and used only to finance high-priority projects.
APPENDIX A:
CURREYNT FOREIGN EXCHANGE KARNINGS, SELECTED YEARS 1935-1959
AND PROJECT:IONS FOR 1970
Projection
1939
19145
1950
:1956
1957
1958
1959
Annual Compound Rates of Chang
1970
1939--9
_ _ _~~~~~~~~~~~~~~-
_
__
ofU__
ml:Liors of U.S.
…I
Total Current Earnings 216
501
833 1,42O
do
DWF
s
1,406
13 99
70.2
4.4
- 365 b(
1,8
-10.7
1.8
8.8
17.0
6.o
7.2
2.4
706
709
721
15,101
Major Commodities
60
82
339
605
469
4D0
394
48o
(2)
(6)
(LO)
(12)
(190)
(79)
(199)
(62)
(250)
(75)
(9)
(12)
(23)
(263)
1(105)
(74)
(53)
(170)
(:109)
(37)
(30)
(30)
(23)
(20)
(142)
(45)
(25)
(70D)
(52)
(34)
(30)
Zinc-
(7)
(16)
(215)
(43)
(4.)
(05)
(20)
(24)
(27)
Sliphur
C-)
(a)
(14)
(22)
(23)
(24)
(50)
Petroleum 8& Fuel Oill(16)
(9)
(32)
(53)
(38)
(23)
(21)
(22)
309
327
62.
42
1930
1514
202
237
Precious Metals
62
49
51
43
52
49
110
239
508
592
69
50
62
57
T
10o
807
Other Commodities
1.0
-
7.4
I493
(-)
-
7.9
272
Copper
1959-70
L9W5
,_
10.0
L02
Lead
_
22
Conmmodity Exports
Cotton
Coffee
Actual_______
19L§5
1950-75
9.8
11.9
11.S
4.0
-
4.1
33
3
2.0
637
,02
12.7
13 .4
.115
5.8
4,.5
67
83
n. a.
o.8
3.0
2.5
2,0
-
2.0
251
-
3.4
-
Tourist Receipts and
Horc-rTradq
Othr,, inc,lu&Lpg"bra-507
ceros"reriWtanc-es
Sources:
n.a.
560
930
Data for 1956-1959 come from baLa nce of payaents (Table 23).
Breakdowqn betweean "major" and "other" commodities for years before 1956 from data in Combined Mexican
WLorkiLng Party's eort.
For assu,mpt-ons regarding projections see nDtes to this table.
APPENDIX A
NOTES
PAGE 2
The following considerations
nderlie
+he projt
of c
rrn
foreign exchange earnings:
Exports of i4ajor Commodities
Cotton: It is considered that production and domestic consumption
atL 'th'e ratue ofL about '3/ per 'year
in wLc
aetepaa
surplus in 1970 should be approximately 2.0 million bales. Regarding export
nay
expamd'
_-
JJ1 Lv-L
_
1--
lik
__
Uli
L-
2
c
UL::sJiLtU
1
L
dldU
_~
U
UL1C
e
_
W1.aJ.
-
--
drl1
ll
_--
_
_ t__
±lpVUV
rv
UIeItI
ny UJ.
d.j4I
4i'
16% over the levels which prevailed in 1959.
Coffee: Assumes that Mexico will maintain its present share cf
-world market, viz. that coiiee exports wili
increase approximately 3% per
year. Estimated price for 1970 is 12.5% lower than in 1959.
Copper: Copper production (57,000 tons in 1959) is not expected
to expand over the next decade. Domestic consumption, on the other hand.,
may go up at the rate of 5.5% per year, i.e. from 16,000 tons in 1959 to
perhaps 28,000 tons in 1970. An exportable surplus of 29,000 tons at a
price approximately 10% below 1959 levels should bring in exchange
earnings of about 4$20 million.
Lead: Projection assumes no output expansion from the 190,000 tons
level of 1959. Apparent domestic consumption (50,000 tons in 1959) should
increase at the rate of perhaps 6% per year leaving in 1970 an exportable
surplus of approximately 100,000 tons. At a price 10% above 1959 levels,
exports should yield approximately US$30 million.
Zinc: Production may increase from 264,000 tons in 1959 to about
300,000 tons in 1970. Domestic consumption has been projected to expand
6% per year from its level of 15,000 tons in 1959 to 30,000 tons in 1970.
The estimated export surplus (270,000 tons) at an average price similar to
that of 1959 would represent approximately $26 million. The construction
of a private zinc smelter with a 70 ton a day capacity at Tlalnepantla,
and of a government plant (Zincamex) to refine zinc concentrates should
contribute to improve the country's foreign exchange situation both by
reducing purchases abroad of refined and processed zinc and by raising
the unit value of exports.
Sulphur: Althou2h Mexican sulphur denosits are very extensive
and lMIexican exports have been rising rapidly (from 502,000 tons in 1956
to 1.082.000 in 1959) further exnansion may be limited by strong comnetition from other low cost producers, particularly France. Volume of
sulphur exnorts has been nron_ctpd to increase at the rate Of 11 per ye-r
to a total of 17 million tons in 1970 - assumption under which kIexico
maintains its…
s …pr…n
…
f
rts.
At an average price of
US$25 per ton exchange earnings from sulphur exports will amount to
PetroleExports have been d
i
in
-ears due to
increasing domestic consumption. Although output is expected to increase
APPENDIX A
NOTES (Cont'd)
PAGE 3
at a good pace as a resuit of large investments, future exports may be
limited by restrictions in importing countries. Projection assumes that
1970 exports will be similar in value to the average of those of the
past two years, i.e. $22 million.
Exports of Other Commodities and Other Items of the Current Account.
These projections are based on assumed annual compound rates of
growth.
The actual rates of growth which prevailed over specific periods
(1939-1959, 1945-1959, 1950-1959 and 1956-1959) are shown in the table.
The last column indicates the annual rates of growth adopted - which in
all cases are conservative by historical standards.
APPENDIX B:
Service
Payments
as of
June 1959
Major Changes Since June 59
Repayment
Estimated
Service on
of Publicly
New Debt
Issued Bonds
…(In
62
100
1956
97
1957
117
1958
170
1959
153
1954-1970
Total Debt
Service
Current
Exchange
Earnings
-Dbbt
Ratios
2 !/
./
1954
1955
DEBT SERVICE RATIOS,
mil:Lions of US dollars)--------------
--
--
__
__
1,058
1,280
5.9
7.8
97
1,420
6.8
117
1.,o6
8.3
--
170
19
172
1,379
14L57
--
--
__
62
100
%
12.3
11.8
P RO J E C T E D
iQAn
1961
13i
+
114
19A6
117
-
1963
115
-
1964
89
=
1965
75
1967
1970
42
53
3
351
11
34
138
1,530
1,603
1,6A7A
1,749
5
31
115
1,822
6.3
-
5
37
107
1,892
5.6
37
-
5
35
67
2,038
3.3
18
-
1
27
44
2,259
1.9
39
3
215
164
1L00
10.2
I8
7.9
See ±a'±e 2.
' Refers to government and railway bonds the retirement of which was announced
on Pay 12, 1960. The operation involves the prepayment of $39.2 million in
19o6 ana Lne reauctLions snownIn fuLure servLUU paymlents.
>/ See paragrapn 49. Includes approximately C110 miiiion borrowed between July
and December 1959; service payments on $100 million loan by Prudential Insurance
Company of the U.S. announced early in 1960 and estimated service on US470
million resulting from the purchase of the holdings of Impulsora de Empresas
Also estimatecd service on French credit for "'El Infiernillo".
Electricas.
Service figures on all new debt are based on preliminary information. Does
not include possible debt service to result from transfer of ownership of
'5-8Mexlight holdings.
_
See Appendix A.
STATISTICAL APPENDIX
Table No.
External Public Debt
1.
2
External Public Debt Outstanding, 1950-1970
Service Payments on External Public Debt, 1950-1970
Population and Production
3
Population and Employment
Gross National Product and Gross Fixed Investment, 1939,
194 5 , 1950-59
Gross National Product, by Industrial Origin, 1957-1959
Agricultural Production, 1950-1958
Main Agricultural Crops, 1958-1959
Volume of Industrial Production, 1950-1959
Production of Main Minerals, 1958-1959
4s
5
6
7
8
9
International Trade
in
11
Exported, 1958-1959
Imports and Exports, by Countries of Origin and Destination
M-o.n rnTAmmoiti+jP
Money,
Credit and Prices
Changes and Analysis of Origin, 1957-1959
12
Money Supply.
14
Financing Granted by Credit Institutions, 1959
,15e
P
T,,
16Federa-l
-
,
J-7-)-
Perforr..ceAT,
-1-7--
g
Federal Government Revenue, by Type, 1952-1960
17
18a
Ve.: ----
1952=1959
Mexico
-
-LU
of, ruuld.L
dra
rrirrln
±1W4Kua.~1)1. VI
andrubli-c,
-diiu
SrUu±JAk.
19
Public Investment, 1953-1958.
20jP
Financing
of.
Irvestme.-.t
by
Seclor
0Je.LL
.LL1Wt~WI1LVIL.,
7LJ
-Ietlet
nrr-1J{
Functional Breakdown
.LJor
L
J.L
i
J.,' %
,
Auto4r.oious
Agencies and Official Enterprises, 1953-1958
21Auormos
22
Agrce
-r. State-
-
inacia
Data, 1958
Revenue and Expenditures of the Federal District, States,
Territories and Municipalities, 1955-1959
External Accounts
23
L.ter.ies
Balance of Payments, 1952-1959
Table 1:
EXT'ERNAL PHBLIC( DEBT OIJTSThNDIL4G, 1952-1970
Estimates as of June 30, 1959
(In millions of UJS dollars equivalent)
Total
E¢xternal
Public Debt
January 1,1952
1953
1L954
1L955
1956
1L957
]L958
1L959 /2
US Governj-.e'nt
Loans
Total
E,irln.ank
Ot!;er
IERD
Loa;ls
1/
Publicl;y
Nationalization and
other Claims
Iss:.Lc-d
Bonrls
501.,2
459j.1
465.5
5165.1
235.8
190.6
181.5
166.9
225,3
180.9
172.5
158,6
10,5
9.8
9.0
8.3
60.1
80.3
79.0
138.4
82.2
78.8
76.0
72.1
499 .7
523.0
565.2
153.5
140.6
159.4
1465.0
133.8
139.1
7.5
6.8
20.4
136,4
134.0
151.3
68.4
65.7
63.3
773.8
277.6
257.3
20.4
171.0
Private
Bank
Credits
SuppliE:r
Credits
7.0
98. 8
89.2
79.5
69.7
60 .
17.3
11.4
37.0
8.7
25.7
32.0
53.1
45.2
42.6
62.6
65.6
347.9
67.0
10(.4
58.4
37-.1
122.2
107.4
58.2
28. 8
107.0
79.4
23.8
P R 0 J E C T E 1)
JanuarytAr 1,1960
699.4
257.9
238.3
19.6
168.1
]L961
624.5
258.6
245.0
13.6
161,6
cj5.4
20. 2
83.5
45 .1
1962
538.7
234.0
220.4
13.6
155.1
52.8
11.4
56.7
28.7
]L963
]L964
1965
1966
447.2
352.5
280D.5
218.5
198.4
151.8
111.8
73.9
184.8
138.3
98.3
60.6
13,6
13.6
13.5
13.3
147.9
137.1
126.2
115.0
50.1
39.4
314.2
29.1
2.4
1.8
1.2
'34.8
1?.0
6.7
1 3.6
]L967
176'.3
147.2
37.0
26.2
16.9
10.3
13.0
12.7
12.2
11.7
102.5
89.8
75.5
60.9
23.7
18.4
12.9
10.8
-__
_
--
--
93.7
50.0
38.9
29.2
22.0
__
__
34.9
7.7
0.3
7.4
27.2
1968
1]969
1-970
1975
1/ IncludiLn
Note:
117.6
private participations.
-5.3
(.5
0.6
--
--
_
--
2/ Amount outstanding is as of June 30, 19,i9.
Source: IBiD Statistics Division, on t,he basis of infornmation
There are at ;resent no drawiings on tne IMF.
submitted by tne Nacional Financiera.
Table 2:
SERVICE PAYFENTS ON EXTERNAL PUB3LIC DEBT, 1952-1970
(In millions of' U.S. dollars equivalent)
Total
External
Public Debt
U'S Government Loans,
l'otal.
Exirrbnnk:
Other
IBFD
Loans
Publicly
[ssued
Bonds
Nationalization and
other Claims
Private
Ba-nk
Credits
Supplier
Credits
1952
1953
49.9
46.0
18.2
12.5
17,4
11.8
1954
1953
1956
1957
0.8
0,'7
1,,7
3,6
62.4
10C0.0
57.1
117.3
8. 4
7.3
18.4
19.8
21.9)
20.C)
12.3
12.3
17'.7
1i.i
21.2
20. 0
6.7
8.1
0.7
0.7
0t7
2.6
2.2
169.9
20.8
36.5
8.8
360.1
6.0o
11.4
16.4
15.5
24.2
1153.3
--
9.6
40.2
37.6
50.1
1959
20.8
6.5
6.7
5.;2
5.2
12.1
11.I
9.5
1958
4.4
6.0
°
7-.3
8,3
9.5
0.8
13.6
9.5
39.8
5.,L
85.1
33.8
54.4
94
9.4}
9.4
0.7
0.'7
0.6
0.6
25.4
30.6
24.5
19.4
11.3
0.7
37.0
17.8
16.1
8.6
4.9
0.5
--
--
9-5
P R 0 J E C T E D
1960
1961
1962
1963
1964
1965
13i 4.3
114.4
116.7
115.3
88.6
75 .1
42.
37. ,3
47.2
56. 2
47. 5
43.2
1966
36 .9
37.3
47.2
55 .9
46.9
42'.5
52.1
27.1
26.3
1967
1968
3,7.4
36.5
13.4
11. c;
12.5
19,69
1970
29.5
17.5
8.4
5.2
10c.6
7'.4
4.1
1975
8.4
6
C0.2
NoLe:
Sour-ce:
1.
Includes services on all debts shown in table 1.
Bank of
!4e
xico,
S.A.
6. C)
14.4
14,,3
30
0.6)
0.l
0. 8
17.8
17.,5
17.,2
5.L
5.(
4.9
12.8
6. 8
6.7
17.,9
6.7
0.
0.9C
17.,5
18.6
6.5
1.C)
1. 1
18.2
9.4
1.4
6.,8
--
14,,5
6.4
2.(9
2.9
--
__
__
__
__
__
__
__
_
--
-
--
Table 3:
POPUL,ATION ANID a1PLOYMENT
1940
1,S
_.________.___._(In thousands)-
TDtal Population I/
Annual rate of' growth (%)
19.6 4
29,679
--
(2.c8)
3 348
(2.9)
(2.9)
(2.9)
1.3,0009
1.6,670
13,468
17,0,70
13,945
17, 481
:14,444
:17,904
5,8'j8
9,6C3
9,881
In Agriculture
In Manufacturing
In Services
Unemployed 2/)
In!active Population
)
)
3,831
5, 551
1,51.8
2,4i50
5,71]2
84
87
2,027
13,7926
-ou:sehold activities
5tilidents
Under 12 years of age
Other
,l Aks of Ju.ne of each year
2/1
TLonger t'han 13 weeks
Socurce:
Direccion General de Estadistica
0,0o76
8,060
1, 266
10,235
51.5
1,562
2,520
aSL65
8,293
1, 303
10,53l
530
_
Percentage Distribution
.1940
1958
IQ
3346
'Jr'ban
Rural
Active Population
1957
I955
100.0
44.7
55.2
10,467
1100.0
5,878
1,607
6,050
1,655
)
2,595
2,670
2
)
)
89
21,258
2.31
100.0
100.0
65.4
57.9
34.6
15.9
25.3
0.9
llO.
100.0
8, 5'34
8,7834
40.0
1,341
1LO,8'38
545
1, 380
:L,156
561
6.3
51.1
2.6
Table 4:
GRCBS NATIONAL FTODUCT AND GROSS FIXED INVE'MENT, 1L939, 1945,
1950-1959
(In billions of pesos)
Current
Pesos
Gross Fixed Investment
(Current Pesos)
'ublic
Private
l'ota:L
_
1950 Pesos
7:ncrease
Index
(LnnuELL)
1L950-100
Total
Investment as
% of G.N.-.
TotaL
Private
Public
1939
6.8
20.5
4Q9, 4
--
(.6
0.-4
0.2
9.5
5.8
3,7
1945
20.5
32.0)
77,1
7. 7
2.3
1.3
0.9
11.1
6.6
4.5
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
41.5
51.8
58.3
56.3
66.5
8,40
94,0
103.,0
114.0
121.,6
41. 5
44.5
45.()
44.L4
47.&8
52.5')
56.()
58.)
60.6
63.4
100,,0
107,,2
108,-4
107.0
115,,1
126,,5
135.4
139.5
146.0
152.6
5.4
7.2
1.:L
-- 1.3
7.6
9. 9
6.7
3. 6
4.5
4.6S
5.8
7.5
8.2
7.7
9.4
L2.3
1L4.0
:L6.0
:L7.3
n.a,
3.2
4 .7
4.,7
4.6
5.!4
7.6
9.1
10.1
10.8
n.a.
2.6
2.`
3.4
3.1
4.0
4.7
4.9
5.9
6.5
7.1
14,0
14.5
14.1
13.7
14.1
14.6
14 . 9
15.5
15.2
n.a.
7.7
9.1
8.3
8.
8.1
9. Cl
9. 7
9.8
9.5
n.a.
6.3
5 .4
5.
5.5
6.0
5.6
2
5.7
5.7
5.g
_
Sources:
_
_
_
_
_
_
.
_
_
…_ _
_
_
_.
_
_
.
Bank of MexdLco for G.N. 5.; Nacional Financiera for Investment.
Data for 1939 anid 1945 investments are frcm The Economic Development of Mexico, The Combined Mexic an
WorkingPlarty - 1953.,
Table 5:
GROCSS MATIIOIiL 'RODUCT
(In
BY INDUSTRIAL OPIGIN, 1L957-1959
millions of' pesos, 1950) prices)
% Increase
; I)is-
Agriculture
Mining
Petroleum
Manufacturing
Building Construction
Electricity
Transports and Communications
Trade
Other Activities
Total (1950 prices)
'Total (Current Prices)
Source:
Bank of Mexico, S.A.
1957
15'58
1959
12,219
1,424
2,107
14,061
2,033
13,514
1,393
2,408
14,735
1,998
1'3,622
1,41'5
2,4305
707
761
18,
3,1112
12,829
9,508
3,187
12,675
9,929
3,276
13, 245'
10,395
'5.1
20.9
16.4
58,0C0
60,600
63,430
103,000
114,CO0
12],60()
1',766
2,088
t ributioni
1959
1L95s87g
195'75
10. 6
0.8
2.2
14.3
4.8
_ 1.7
1.6
16.5
7.0
7.6
2. 4
7.5
2. 8
1.2
4.4
4.5
4.7
100.0
4.5
4.6
-
10.17
6.7
21.5
2.2
4.4
241.9
:3.3
-
]L.3
-
4.5
Table 6:
AGRICULTURAL PRODUCTION
IndLex: 1950 = 1]00
195,2
Total
Foodstuffs
Corn
Wheat
Beans
Rice
Coffee
Sugar Cane
Raw Materials
Cotton
H.enequen
Copra
Tobacco
Source:
Nacional Financiera,
Ganaderia.
1953,
1954
1955
1956
1957
L958
169.0
101.1
112.4
1344.3
146.7
143.2
'L56.2
100.2
115.4
133.7
138.0
143,.0
15.L
102.6
87.2
97.7
80.9
108.0
113.9
119.2
114.2
119.3
81.3
133.6
124.C)
143.7
142.9
159.6
91.1
129.4
138.2
14'3.8
144.7
179.4
112.4
14L.8
148.7
140,.3
211.6
172.6
126.0
134.7
113.5
144.1
234.5
:L71.3
:128.6j
L48.3
155.:1
1160.1
221.5
195.8
135.1
167.7
170.3
102.2
104.1
136.2
17:1.6
151.8
172.3
189.5
101.7
96.2
108,2
103.0
105.3
90.2
130.8
104.9)
1150.4
103,7
163.7
1()7.5
19.15.6
108.5
19:1.3
15-L.8
160.8
109.9
330.0
153.2
180.4
117.5
354.1
199.0
200.2
130.4
383.7
202.5
S.A., on, the basis of data supplied by Secretar:ia de Agricultura y
Table 7:
MAIN AGRICULTURAL CROPS, 1958-1959
(In thousands of metric tons)
Percentage
Change
1959/1958
I5
QC;tq
1959
Cotton
Coffee
Cottonseed
511
120
366
906
648
cane
16,252
18,300
12.6
1,330
5,000
1,400
5,700
510
14L.0
_ 2.0
Sugar
Wheat
Corn
Beans
520
96
- 28.5
_ 20 o
-
28.5
5.3
4,00
2
nenequen
4,278
252
121
282
126
Tomatoes
355
373
12.0
4 1
5.1
A-lalfa
Rice
Source:
Bank of Mexico, S.A.
Ta'ble 8:
VOLUME OF INDUST'RIAU PRODUCTION
( Indices;
1950
100)
1957
1958
% Change
19'59 over
1958
151.8
163.9
181.2
n.a,
104.3
102.0
108.9
1C)8.6
+ 1.6
85.1
96.5
87.1
93.0
593.0
- 6.9
1L00.9
98.4
106.5
106.1
113.2
112.7
+ 2.8
1,24.1
133.4
136.5
158.2
177.
200.0
218.4
+16.5
Crude
Products
106.7
1,26.3
100.0
:L37.8
115.5
139.2
123.4
162.7
131.9
183.5
135.0
209.4
155.0
226.0
+ 4.9
+18.3
Electric EnerKy
120.7
L28. 9
142.0
157.4
176.9
191, 1
205.8
+ 7.5
Construction
118.2
120.S5
127.2
150. 3
164.1
181,5
179.9
+ 4. 5
Manufacturing
119.4
116.8
125.4
138.4
153.6
171.Z
181.7
+ 7.0
1:L6.4
124.2
1L12.'3
]L23.8
116D.9
138.8
123.'1
162.2
132.1
187.2
143.6
215.5
15,3.1
224.0
+ 5.0
+ 8.0
1952
1953
1954
1955
118.1
:L17.3
1l37
138.3
103.8
101.4
95_5
Precious MetaLs
Industria:l
M4inerals
105.2
103.4
103.4
Petroleum Industry
All Industries
Hinini
Consumer goods
Producer goods
Source:
N--CioOna1 Finariciera,
S.A.
1956
Table 9:
PRODUCTION OF MAIN MINERALS,
1958
Unit
1958-1959
1959
% Change
Precious Metals
9,755
-
1,480
1,371
= 7.4
64,963
201,923
224,105
190,681
263,935
-11.8
- 5.6
17.8
3,266
19.6
27,837
566
42.3
-27.2
235.0
10,334
kg
Gold
lverrSo
Ts
5.6
Meals
.Industrial
Tons
Copper
Lead
Zinc
2,747
19,563
Antimony
Graphite
Mercury
Arsenici
Tin
Tungsten
Iran
Manganese
Bismuth
Cadmium
Selenium
"
57,274
778
3,096
10,465
553
383
-30.7
75
1,775.
- 7.9
I4
"
581,485
78,650
"
190
"
535,620
770
49
76,935
239
574
4
_ 2.2
25.8
-25.5
-91.8
43
44
2.3
Tons
1,470,705
1,552,826
5.6
t
1,270,965
1,359,751
7.0
Molibdenum.
Non-Metallic Minerals
Coal
Sulphur
Source:
Bank of Mexico, S.A.
Table 10:
Main Cummoditi.es
xported
dollars)…
-…(~~~~~~~~~_In.mlinof
1958
71959
Total Value of Commodity Exports
Relative Importance
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
1959
(:0)
-
709.1
7206
32.0
5.4
La.8
38.9
1.7
62.4
37.9
11.8
11.1
4.3
5.9
2'3.3
Honey
Frait and vegetables - prepared
22,7
2.5
1.6
8.9
Refined sugar
2.2
8.7
1.6
0.8
3.2
o.6
0.3
1.2
12.0
6.8
1.0
2.0
1513.8
7.8
1.3
202.5
6.8
19.0
11.3
2.7
0,2
28.1
0.9
2.6
1.6
23.9
3.3
16.3
8.2
2.3
1.1
Food and Agricultural Products
Shrimp - fresh or refrigerated
Other sea-foods - fresh
Coffee
Cattle
Beef - fresh or refrigerated
Melons and water-melons
Toimatoes
Molasses
Peanuts
Cotton and cotton linters
Ixtle
Henequen
Fodder - all kinds
Vegetable lwax
1.9
79.2
16.4
8.6
2.0
4.1
100.0
0.2
8.6
5.3
0.4
Minerals
STEp0gur
2inc concentrates
2iinc bars
Copper bars
Copper concentrates
Manganese concentrates
Maniganease (ores)
Lead bars
Oxide of liead
Mercury
Calciwm fluoride
PenoleumS l1hatue
d
Pet;roleum ar.d fuel oil
23.2
13.0
7.0
25.0
4.9
2.7
411
35.1
1.9
4.9
7.8
°.3
23.3
28.8
0.9
3.0
2.7
4.0
0.2
0Q4
0.4
34.1
4.7
2.7
3.9
0.4
7.5
63
21.2
0.6
1.0
°2
2.9
Table 10:
Main Commodities Eaorted (Cont.)
(In millions of dollars)…
195Other Commodities
Iron and steel manufactures
Natural or synthetic hormones
Pharmaceutical products
Printed material
All other commodities
Source:
Bank of Mexico
1.3
8.2
2.5
l9S79--1TVRelative Importance
in 195
_ (%)
3.7
005
7.4
:1.0
0.3
0.14
14.2
2.4
3.4
2.6
8c9.4
102.14
T2hle 11:
REPORTS ATh
YLPORTS BY COUNTRIES OF fRlTGIN AN1D DESTI1TATION
(In percentages of total)
193'7
1952
Destination of Exports
100
100
100
10')
US and Canada
56
80
75
79
2
4
TA-l
A,uer
Continental EPU
Sterling Area
United Kingdom
Rest of the 'vWorld
1
1
22
7
9
13
13
3
5
.3
(11)
(2)
7
7
Origin of Imports
100
100
100
100
uS and Canada
63
85
83
79
Latin America
2
1
--
26
9
12
:1
1j
Continental EPU
Sterling Area
United Kingdom
Rest of the World
Source:
5
(5)
4
I.M.F., International Financial Statistics
(5)
8
4
4
(3)
1
(2)
2
(2)
15
.2
(3)
1
Table 12:
HOiEY SU,?PLY
Changes and Analysis of Origin, 1957-1959
1)957
Deposits and
Savingsbanks
To -tal
Percent Change during Year
A4nnual Changes
Notes and Coins
lDeposits on Checking
Account
1958
Bank of
Mexico
Total
Deposit,s an,d
Savingsbanks
12,398.0
+ 7
423.9
376.5
--
423.9
17.1
Origin
_L959
Total Depo.3its and
Savingsbanks
Bank of
Mexico
Bank of
Mexico
13,25403
7
800o4
6,55.C)
35
201.3
--
1,25.2
441.0
201.3
129.8
856 ,3
1
+
n.a.
2
800.4
Total
n,a.
n.a.
a.
2,060.0 I/
1,7,1
32,9
331-,1
n,a.
n.a.
856.,3
L,37().8
5113.2
1,889.0
External (Gold, Silver
an-d for exchange)
163-9
-347.2
-183.3
321.6
-1,062.59
-*741..3
8i7.3
873.7
96l1.0
Internal
272.6
711.1
983.7
-120.3
1,717.5'
1,597.6
1,283.5
-355.5
928.0
-458.0
353.8
-104.2
-346.2
476.0
129.8
50o5.7
-51:1.6
- 5.9
-39B
Private Sector
T2h9
3ecurities
2.2
Credit
129,c1
Saving & Time Deposits -139.2
Dennand & Time
Obligations
-
54L4
Foreign Exchange Deposits and Obligations -510.5
Bank Capital, Reserves
znd Profits
- 74.9
Other
7.1.0
-
-
40.7
17.1
163.5
59.8
--
129.1
--
-139.2
17.7
- 72.1
7.8
16.7
-493.8
-596.8
40.6
369.2
-115.5
88.6
440.2
9.8
-
-
-
32.Ci
;27
---
163,,5
59,.8
485.5
-231.1
14.8
44.4
6.7
-.590,1
42,5.0
25.2
63,4
85.1
94.9
22.6
-
;3
-3T.9
4.1135.5
-231.1
- 36.7
7.7
27.1
397.9
-135.6
- 17.1
-153.1
-119.1
4.6
-
-l:L4.5
TABIE 12:
MONEY SUPPLY (Cont'd.)
1957-1959.
Changes and Analysis of Origin,
1957t
Deposits and
Savirgs banks
_
_
Bzik clf
NefXico
Total.
423.3
928.1
_
i ; 19258
_
Deposits and .. Bbik of
Savings banks Me:xico
_
1959
_
Total
Deposits and
Savings banks
12477.6
397.5
Bank of
Mexico
Total
482.5
880.O
Internal (Cont'd)
Public Sector
_ lt1toTe'derzaL
s__e_r
Cr7e
Government
Federal GovernmB nt
Checking Account
o4h.8
__-
--
-
Q.5
-
0.5
--
20..
20.
--
29.9
__
1,17.7
____
-
o.6
-
o.6
187.9
187.9
500.6
67.9
500.6
67.9
--
_
_
---
-
69.9
34h5
-
69.9
34.5
--
--
__
-
o.6
261.6
261.6
1,057.9
14.5
1,057.9
14.5
CredLit to Goverrment;
Banks (Rediscount)
Other
o.6
-
Appropriations of Bank
CaLpitEl
Government Securities
--
--
--
*-
234.5
286.1
520.6
46.9
6)44.3
691.2
599.0
270.3
152.7
423.(
_ 17.0
47.6
30.6
-201.5
225.8
_ (6.0
159.8
196.0
-205.8
9.8
380.3
_
__
_
-835.9
-236.9
Securities of Government Banks
Interbank 0Per-tions
1/
-
Figures on money Isupply (and chai ges in mo)ney supply) refer to December 1959.
tc the period November 1958
Source:
Elank of Mexico, S.A.
-
November 195,9.
-
15.0
-326.4
-216.,5
53.9
The breakdown by "'origin" refers
Table L3:
BANK OF MEXICO CREDIT, 1952-1959
(In millions of pesos)
Total
ry4o
Federal Goverrnmenrt
T'o Oif icial Bank3s
Change
:1952
1953
1954
1955
1956
I569.6
1,0.9
1,177.1
413.8
1,018.7
70.4
99.7
69.5
881.0
1,033.7
239.8B
217.0
333.2
80.7
40.8B
171.1
353.4
97. 5
122.0
669.2
] 7.5
20.4
7.15
210.0
16.1
1.4
--
21.7
31.2
19.0
12.3
---
16.6
17.2
---
18.5
15.0
66.2
--
22.0
50.0
25-.0
34.8
20.7
98.4
33.L
:127.L
_
72. 6
43.7
60.9
44.7
102.5
107 2
-
466.3
19557
1958
1L959
1'959//1958
982.8
1,551.9
2,733.4
+L,181.5
68.9
68.4
67.8
67.:L
283.4;
905.1
813.9
136.9
2,65.'L
-'-:S3.2
229.21
595.4
658.4
1,149.3
2,023.5
+
874.2
15,c
-
293.8
+
:2.5
262.6
+
+
12.4
28.7
+
1:2.8
-
0.7
Banco NacionalL de CoDmercia
Baiterior
Barico cle Credito Agricola
Banco de Credilbo Ejidal
N2cionml FLnaniier,a
Banco de Fomeento Cooperativo
Danico Nacional de Transportes
Final ciera Azucarera
Banico liacional Cinematografico
Tlo Depos:it aid Savings Banks
Source:
Bcmk of Mexico, S.A.
---
L03.3
60.5
---
--
--
--
-7-
5'9.8
101.2 -
65.0
Table 1Il:
FIlNAiCING GRANTED BY CREDIT INSTITUTIONS, 19; 9
(In millions Df pesos)
Banco de Mexico a;nd Commercial Banks
Totnl
Banco de
Deposit and
Other
Mexico
Savingsbanks
Private
Banks
Other Credit Institutions
Tota).
rivate
5)ff
i a tcJ
"Financi erass
Credit
Insti'tutions
Total Financing
_
_
345.6
_~~~~~~~~~~~~~~~~~~
To Enterprises- and Individuals
Securities
Credlit
z231.1
-
-
'25.3
604.C)
410.1
191.7
2.2
To Federal Government
Securities
Credit
Bank of Me)xcc,
298.2
1,!529.3
To busine,ss
To Prroduction
manufacturing
agriculture
mininlg
Source:
_
S.,A.
135.3
._60
955.6
25.3
3602.7
i,8.3.2
17.5
700.6
506.5
24.0
3,553.9
1,596.2
1,9'57.7
373.8
1,074.4
59.0
16.6
175.6
92.9
447.5
7.4
-
8.8
1.4
2.7
3.6
3,378.3
583.7
2,794.6
1,819.4
973.8
82.7
1,875.0
1.0
1,8714.0
1,133.7
7l0e3
-
0.5
1.4
1,50,3.3
582.7
920.6
685.7
233.5
1.4
1.3
L8.8
257.0
-
208.2
1.3
48.8
257.0
-
2C)8. 2
847.4
227.0
219.5
7?5
--
69.1
378.4
187.9
187.8
2.7
_
385.5,
-
835.9
449.1
-
384.59
-
835.3
449.1
0.6
-
0.6
-
--
--
-
Table 15:
1952-1959
PRICE INDICES - MEXICO CITY,
Base: 1954 - 100
WholesAle Prines - 210 Commrdities
General
Consumer
Producers
Index
Goods
Goods
1952
93.2
1953~~~~~
1954
~
91.
100.0
A
118.9
1956
n0e7
17..~~
100.0
,iI ',
120.9
Ol.
A
1) G
L C.L 4
'J
J.L'.%j.
I
-L
96.1
~~~~
93.
129.5
133.7
1nt'
131 .
14.
7
7.)-L- --
(
' Cn--
~
100.0
iio
Cost of
16 Commodities
Living
99.5
~9.
97.2
1pOO
100.0
AAr2
<I 1
116.0
i -r-. e
L.
1958
.UecU_L_)L1-11U--r
89.1
~~~~
AR.7
~
Food Prices
122.9
'I
2
.JLC7.
123.8
142 9
'IAn4
147I.87
LeL
.U
z.
1
1:21.5
i fQ A
1)43.3
17n
JL41.U
Dee,xe
19 8
131.2
135.r'7
-I24.9
1v.
March
1959
132.0
136.2
126.3
149.5
1)44.5
n -r-
n ,-
, nl
,
,n I r'
n
T____
_
tulie
Jyd Y
September 1959
DecembDer 1959
Source:
L-U.YI
-
1J).1
,
r'
-L,:)
,
J.1
-L4-
li
%
J-) I -
n
129.1
132.5
124.3
146.8
1,46.9
31.6
133.0
129.6
148.3
4
Bank of Mexico, S. A.
Table 16:
FEDERAL GOVERNENT BUDGET ]DERFORMANCE,
1952-1959
(MAillions of pesos)
1952
1953
]954
1955
1956
1957
1958
1959
1960d
(Budge!t)
ERevenue
4,837.0
4,318.0
5,288.,3
7,118.1
7,893.9
8,012.1
8,801.7
9,322.4
10,252'.0
Expenditures
5,115.0
4,497.'0
5,737.2
6,441.5
7,506.7
8,395.7
9,757.7
9,758.4
10,-52.0
- 273.0
-
449.0
676.6
387.2
38.6
_ 56.0
- 436.0
Deficit (-) or Surplus.
179.0
-
-
Financing
Increase in cash balances
ri.a.
nf.a.
0.3
274.1
221.65
272.3
- 185.5
149.0
Net change in Government
debt
of which
ri.a.
n.a.
449.93
402.5
- :165.6
111.3
770.5
585.0
n.a.
n.a.
n.EL.
1,297.1
8 47.7
1L,143.2
1,55(.7
1,441.5
1,607.1
1,705.0
2,902.3
2,131.8
2,169.9
1,584.9
New debt
Debt amortization
Source: iMinistry of Finance.
n.a.
1,593.7
Table 17:
FEDERAL 3OVERNMENT REVENUE, BY TYPE, 195l_12-160
(In millions of pesos)
1952
1953
1954
19'55
Total Revenue
4,842.4
474.8
$160.7
ZJ133.4*
Ordina:r
4816.4
4,274.6
5,131.2
6,C8606.c
4,184.'3
3,'705.0
4 466.4
1,441.0
Income Tax
1/ 677.9
Export Taxes
Taxes on Trade and Imrports- 1,096.6
554.4
Taxes on Production
414.4
Other Taxes 2/
1,137.4
5,58.9
1,103.2
56..6
348.9,
6312.1
I.
Revenue
A. Tax Revenue
B3.Non-Tax Revenue
Government Services
Receipts from Governmient
Property
Other
II. Extraordinary Revenue!
(Tales and recovery of property)
1956,
% 04] .1
1957
8, o 36. 6
1960
(Budget)
8,80:L.7
9322.4
10,252.0
,24'1
n.a._
9,6o2.o
7,860.6
_
6"3 5.7
982.
i'.()29._1
752'.0
n.a.
,3427.0
1,261.7
911.9
1,359.2
570.9
362.7
1,9,84.9>
1,438.7t?
1,664.4
782.5
365.2
2,492.4
1,281.5
1,839 .5
865.o
504.1
2,o700.L
1,(13.5
1,t896.:L
797.:3
622.1
2,757.9
1,0213.6
2,35L.3
891.4
502.8
3,050.15
n.a.
n.a.
n.a.
3,100.0
890.0
2,500.0
1,387.0
550.0
69.6
664~.8
75032.
831. 2
722.1
n.a.
1,175.C
197.2
196.1
231.5
242.1
308.6
:349.3
356.5
n.a.
498.0
47.3
38'7.6
37.6
335.5i
44.4
388.9
102.2
406.0)
13(.0
313.6
LL28.6
353.6
125.1
240.5
n.a.
n.a.
177.0
500.0
26.0
40. 2
29 .5
147. 4
306.4
p62D
552.6
n.a.
650.0
2/ Includes inheritance taxes, lotteries, etc., plus back taxes collected each year.
Ministry of' Finance.
1959
.7
_
1/ Includes taxes on sugar, gasoline, beer, cement, rubber, alcohol, etc.
Source:
1958
363.5
Table 18:
FDANCING OF FEDERAL AND PUBLIC SECTOr
(In millions of pesc)s)
1955
_
~
~
~~__
___
1957
1958
1959
9.5
__75
6, 4441L
7,507
896
9,758
9L75
Current
4,,460
5,3:31
5,680
6,803
Investment
1,981
2,176
2,716
2,955
6,620
3,138
4,,660
4,933
5
6 51.6
7, 13
1,981
2,679
2,176
2,7.57
2,716
3,230
2,955
3,561
3,138
3,992
3,607
3,838
3472
35 ;5
,J-22
2,658
(7,118)
2,563
(7,894)
2,332
(8,012)
1,999
(80802)
2,702
(9322)
(5,331)
(5,68CI)
(6,803)
(6,620)
1,556
2,42()
Total Public Investment/l
Federal, Government /2
Rest of Public Sector /2
Total Public Savings
3
Federal Government
Crdinary Revenue
(4,4 6 0)
Current Expenditure
1,275
1,14CI
-1,05
-1,095
-2.474
677
6,441
7,118
-1,730
387
7,507
7,894
-1,482
-
949
Rest of Public lector
Total Pubilic Defi-cit
Federal Government
Totel. Ep)enditures
CTdinary Revenue
Rest of Public Eector
___________
/1
L2
/3
1956
1955-1959
_,9
Federal Government Expenditures
M
INVEST'NT,
~~~~..-
~
.-
-
..
384
8,396
8,012
-2,090
-. 2,
-2,008
-43 6
9758
9R,32 2
-1,57'
95,6
9,75,8
8,80)2
-.2,C)5
_
_..
_........_... .....___.__
As reported by the Bank of Mexico. Includes Federal Government, Federal District, States, Territories and Municipalities and Pub] ic Agencies and Enterpriseso
Federal Goverriment Investment equals physical investment plus federal fiscal resources transferred to the rest of
investments by Public Agencies and Enterprises excludes the part so
the public SeCtOr' for investnnent purposes.
financed. Federal Investment expenditures do not include those financed by tax receipts refunded to t he National
and Pacific Railroads ancd the Federal E1ectricity Commission. These tax refunds are included irn Agencies' own
resources (saivnsg of Agencis and En-terprises) and deducted Frm govnrnment rev'enue In computing s avigs of t
Federal Goverrunernt.
Savings of Federal Government derived as differenice between ordiiary revenue and current expenditures, Savings of
Table 18:
Footnotes continued
finauced
Public 4gencies and Enterprises equal. investnent ith
A4
o n resourcIs
Federal Government de.ficit equals total revenue less total expenditures (see Tab'l
16)
This is equal to
capital expenditures less federal. savings.
Source:
Nacional Financiera, on the basis of d ata by Min:istry of Finance, Bank of Mexico a nd. Investment CommIissi-on.
Tab:Le 19:
PUBLIC INVESTiffENT, 1953-1959
Functional Breakdown
]953
Total Investment
Basic Development
Ai.
riculture
1. Irrigation
Large
Small
2. Other
'I.
Hanufacturing
I. Energy and fuels
Electricity
Petroleum & gas
2. Steel
1954
In miilions oiJ. pesos
:L955 1956 L957 1958 1959
.,/ -
1953-59
_ _
:3,076 4,:L83 14,408 4,'571 5,628 6,L90 6,789 34,8l44
,,669 3,479 3,76
3,4
4,423
6
,766 28,906
562
626
606
651 670
6)97
739 4,550
>
?i
'
697 4,281
(444) (534) (533) (536) (5412) (1487) (596)(3,671)
(61])
(70) (69) (52) (99) (157) (101:)
(6510)
57
22
4
63
29
53
4:2
269
762
709
(253)
(456)
1953
In percentages of total irvestinents
1954 1955 1956 1957 1958 1959 195359
1 365 1,738
1,232 1,421;
(-331) (368)
(5'01)(L,056)
--
L
1 289 1,736 2,090 2,206 11 186
1,145 1,7
1
,977 9,852
(285) (294) (462) (76:3)(2j,756)
(860)(:L,282)9(1326)(1,21))(7,097)
35
100
132
1L54
128
560
--
22
18
2
100
26i1
42
100.0 100.0 100.0 100.
8.7
83.2
18.3
15.0
14.4
12.8
79.7
10.9
0.5
0.6
]3.1
1 2.3
10.5
1.8
0.8
2 _ 32.6
23.0 29.5
8.2
7.9
14,8 21.5
39.h
32.3
8.3
24.0
28.2
251
6.2
18.8
3o.8
>38
28.9
21*4
C32.5
29.1
11.2
17.9
32.1
28.2
7.9
20.3
2.2
1.6
0.1
14.4
2e0
1.9
1.7
148
0.3
0.5
O.8
-
88
720
:L.7
2.4
5.9
C. Transport and Comnunication
1,345 1,488 1,422 1,702 2',017 2j 76 2, 8 21 13 1
L. Roads
544
608
591 556
788
848 1,043 4,977
2. Railways
661
728
662
807
850 1,029 1,118 5,,854
3. Maritime
76
138
150 150
163
176
145
998
4. Pipelines
63
14
8
157
16,
265
370 1,060
43.7
17.7
2:L.5
2.5
2.0
4. Other
5.
Other,
53,
1
--
11
32
28
53
38
36
172
83.0
11.3
10.4
7.9
2.5
0.9
54
--
834 849
14.2 11.9
12.9 11.4
11.7
9.6
1.1
1.8
1.4 0.5
1.2
Coal
8.6
100.0
13.7
13.7
12.1
1.6
0.1
YW
_
3.
100.0 100.0 100.0
--
2
5.2
22.8
7.5
10.3
8.8
1.5
2.3
2.5
1.9
--
-_
0.2
0.9
0.5
2.4
13
35.6 32.3 37.2
14.15 13.4 12.2
17.4 115.0 17.7
3.3. 3.4
3.3
0.3
0.2
3.4
35.8
14.0
15.1
2.9
2.9
0.9
38.4
13.7
16.6
2.8
4.6
0.6
39.9
15.4
16.5
2.1
ID.4--
I-0.2
0.7
2.1
5.4
37.8
14.6
16.8
2.9
3.0
0.5
0.5
PUBLIC INVESTMENT, 1953-1959
Table 19:
(Contd.)
Funct,iona,l Breakdown
In millions of pesos
l9531
19517-:3ET-:3l561953r;
Defense
1. Defense
2. Public Buildings
3. Other
1/
0.5
2.4
2.7
6.9
3.1
6.4
2.2
8.2
1.8
851
558
3.5
0.7
3.3
0.4
1.7
1.3
2.9
2.5
2.3
2.3
2,15
1.,6
1.7
1.8
2.5
1.6
1,015
75
425
515
14.9
7.5
0.4
0.5
6.5
1.0
0.2
0.1
0.8
o.6
0.2
0.4
--
2.2
0.2
2.0
0.1
2.14
0.,2
1.,9
0.,3
3.0
0.2
1.4
1.4
2.9
0.2
1.2
1.5
43L
15,3
2j,874
642
714
56
131
L15
129
13(
155
97
11Li
120
45
27
8
19
--
126
10
111
5
151
12
:119
20
203
12
9,4
97
15(0
6
57
87
313
18
22
272
III.Administration and
0D.3
0.1
430
:L94
136
18
8
:3
34
11.1
5.5 10.1 12.0 11.9
670
15(
109
23
1953-5
3.7
550
108
445.5
21
1959
12.1
4,9.
231
6
1955
14.2
821
115
1C)
1956--1957
19.2
876
9-9
195,--Wr
2t2
5104 3761
119L
In percentagLes of total investments
3~~/ L/
r
Il. SociaL
1. UzFban and rural
services
2. Public Hea;Lth
3, Education and
research
4. Housing
__
1528 1959R }L91;3-59 1953
14
0.2
1.9
2.8
9 3 13.6
19.8
Preliminary
Source:
To'tal investment as rq?ortied by the Investment Commission diff'ers to some extent JLrom
Investment Coommission.
data published by the Baxnk of Meicico as shown in Table '18.
Table 20:
FINANCING OF INVESTIENT
By Major Public Bodies, Autonomous Agencies and Official Enterprises,
19513-19'58
(In millions of pesos)
Financing…a
Total
Irnvestmeilt
With Federal
Resources
Current
Incoore
Total
28056
13,314;
7,12
Federal Government
10779
8,494
4,769
3,887
-
244
157
_
3,804
1,962
2,953
1,497
13,076
Comrmunications and Public Works
Agriculture
Hydrauli,c Resources
Other
Autonomous Agencies
Federal Electricity Commission
liexican Railroad
Miexican National Railways
Pemex
Federal District Electric Transport
Other
Official Enterprises
National Warehouses,, S.A.
Altos Hornos de Mexico, S.A.
Constructora de Carros cle Ferrocarril, S.A.
CredLit
Domestic
Exterrn7al
2,974
4,639
1,757
284
772
87
l]L.O
244
678
220
174
-
2,532
6,35
793
3_417
1,933
1,440
71
42
3,79
107
41
1.1
__
56
2,903
6,658
697
1,21.6
4,028
35
626
955
2,004
61
21
82
--
244
__
1,393
354
1,OC)9
29
2
2,474
586
551
399
938
48
6
27'2
1.1
--
49
88
20
2:33
-
74
553
137
--
38
Table 20:
FINANC ING OF IENVESTiENT (Cont'd)
_
_Finauncir1
Total
Investment
Official Enterprises
Owqn
Resources
Domestie
External
(Contd)
Diesel Nacional, S.A.
Pacific Railway, S.A.
Guanos y Fertilizantes, S.A.
Chapala Electric Co., S.A.
Other
Subsidies to States ard Municipalities
Federal District
Source:
Wlith Federal
Resource's
_
Credit
Investment Commission
231
1,143
62
54
220
24
1J702
-470
30
-1,702
12
14
29
22
185
--
219
--
33
5
5
6,59
27
--
Table 22:
REVENUE AND EXPENDITURES OF THE FEDERAL DISTRICT,
STATES, TERR.ITORIES AND MWINICIPALITIES, 1955-1959
(In millions of Mexican pesos)
1955
1956
1957
1958
1959
Fedner.-' District
R;evenues
Expenditures
Deficit or Surplus
632
500
798
796
817
1,082
937
1,031
1,027
1,032
1,181
1,186
1,415
1,432
1541
1,614
1,481
1,541
1,423
1,530
327
327
383
391
448
456
n.a.
n.a.
456
508
States and Territories
Revenues
ExpenditurEs
Deficit or Surplus
Muncipalities
Revenues
Expenditures
Deficit or Surplus
Source:
Bank of Mexico, S.A.
BAIANCE CF ?PAM4ENTS, 1952-1959
I'able 23:
(In millions of dollars)
1953
1552
1955
1956
195 7
1958
1L959
2>4.3
8.19
-154.2
1406.3
-163.6
1,379.IL
_ 29e?
12 74
…~~~~~~~
978.3
5179 6
1,057.7
L,281.3
35.6
1 4 4
625 .3
Exports (f.o.b.)
259.5
Non-monetary gold exports
trafMc275.1
border
Foreign travel and
28.9
Braceros remittances
159.5
Other
559.1.
6]L5.9
733.6
807.2
706.1
7'09.1
720.6
51.9
45. 2
313.4b
344.9
27.9
47.5
445.4
42.6
508.2
51.9
591.5
3301
636.7
41,2
-103.2
I,. Current Account
CredLit
Delbit
24.6
23.6
23.5
25.8
1,542.7t
1,437.1
828.8
807.5;
788.7
883.7
1,071.6
13155.2
1,128.6
10Co6.6
113.2
141.2
242.2
237.6
295.7
82.9
39.3
18:2.3
79.6
215.5
107.6
31.9
173.2
i75.3
120.1
117.2
4]4.8
48.8
46.1
122.6
53.8
130I0
44.8
73.0
87.()
81.1
227.0
210.0
192.3
90.4
208.7
82).1
85.83
74.7
4 .5
126.5
135.8
153.1
191.7
181.6
100. 3
- 19.6
201,.8
66.1
-
6.9
22.9
(63.2)
Utilizations
Amortizration
Short-_termrCapital Mloirements
-
Private individuals and enterprises (net)
Private andi Official Banks,
excl.Bank of exicio (net)
EII.Net Errors and Om:issions
Bank
of Mexico
33.2
24.0
1560.5
Off icial loians
- SourceSowncBank o:£ Me:Ic
37.8
23.8
19456.0
Trading in securities (net)
in BanJILDU.&UL VeXi-co%a
BGIon
24.8
51.2
559.6
35.7
1L,190.4
Direct investments
aL
33.7
21.5
-
1,082.0
Lo:n-term Capital Movements
___--ange,
-
1,C)70.5
II.Carital Account
BV. LChangSedb
91. 3
-
1,081r5
Imports (c.i,f.)
Foreign travel and bordler
traffic
Direct investment income
Interest on officialcdebt
_\i_.
1954
-
(40.3)
9.1
-
1-5.-6
(51.9)
(36.3)
1.2
6.7
~
28.6
('78.7)
(50.1)
-
13.3
37.3
(101.7)
-
12.0
35.4
(114.7)
(64.4)
(79.3)
56.9
-
45. 4
91.2
-
bL.0O
61.8
-
4.4
29.4
58.4
-1..5
-
65.5
-
2.6
19,2
11.3
_ 21.7
- 91.9
-116.8
-11:3.9
18.9
26.0
- 35 .1
2C)0. 1
6o.5
-18.0
131.6
129.7
111.8
104.6
15.5
-
75.7
(158.2)
(82.5)
-
(137.9)
59.6)
33,.1
-
31.:L
65,9
-
13.8
27.
- 7.
Sum of :Line;s I,
133.0
1,0
(159.1
91.2
-
27.88
-
l0.)69.8
(229,
('38.9)
o.6
-32.,5
54.8
87.
II and III
6.9
-
5.8
L2,7
-127.2
51 8