The Mexican economy has recovered somewhat from a scorching recession imported from America, but is still hobbled by domestic monopolies and cartels
Aug 27th 2011 | SALTILLO
HOT and high in the Sierra Madre, the city of Saltillo is a long way from Wall Street. Stuffed goats keep an eye on customers in the high-street vaquera, or cowboy outfitter, where workers from the local car factories blow their pesos on snakeskin boots and $100 Stetsons. Pinstriped suits and silk ties are outnumbered by checked shirts and silver belt-buckles; pickups are prized over Porsches.
The financial crisis of 2008 began on the trading floors of Manhattan, but the biggest tremors were felt in the desert south of the Rio Grande. Mexico suffered the steepest recession of any country in the Americas, bar a couple of Caribbean tiddlers. Its economy shrank by 6.1% in 2009 (see chart 1). Between the third quarter of 2008 and the second quarter of 2009, 700,000 jobs were lost, 260,000 of them in manufacturing. The slump was deepest in the prosperous north: worst hit was the border state of Coahuila. Saltillo, its capital, had grown rich exporting to America. The state’s output fell by 12.3% in 2009 as orders dried up.