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Mexico's reaction to economic crisis has been weak, says Nobel winner Stiglitz

November 19, 2009 |  9:46 am

Joseph Stiglitz, the Nobel Prize-winning economist, thinks Mexico's reaction to the global economic crisis has been one of the worst anywhere. 

"Statistics showing growth have been very weak and pessimistic" for Mexico, Stiglitz said. "The combination of a very weak recovery in the United States and a fiscal policy that doesn't stimulate the Mexican economy is worrying." Stiglitz spoke to attendees of an event organized by Grupo Mexicana and Grupo Posadas, two major Mexican companies.

El Universal newspaper reported that Stiglitz said Mexico's position in the face of this crisis was "unusual."

"In contrast, countries such as Australia, which was the first country in the developed world to emerge from the recession," Stiglitz said, "applied strong measures through a packet of well-defined incentives."

Although Mexico is dependent on the U.S economy, that represents a risk, he warned.

"Many people hope that a recovery in the U.S will be the solution," he said. "But Mexico needs an alternative."

-- Deborah Bonello in Mexico City