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Global Markets and Economic Update

International Business

August 24, 1995


* Mexican stocks closed lower in moderate trading as the falling peso compounded concern about the domestic economy. The spot dollar gained 1.6% on the peso to end at its highest closing level since April 5.

* The peso and the stock market have fallen since the government announced last week that the economy had contracted 10.5% in the second quarter.

* A new plan to restructure commercial debts was not expected to affect the market dramatically. Interest rates on business debts will be limited to 25%, and to 38.5% for credit card loans. Investors continue to tread warily, awaiting President Ernesto Zedillo's Sept. 1 state of the nation address.

The Bolsa Index

Wednesday closes: 2,443.24

Sources: Bloomberg Business News, Dow Jones


After strong, export-led growth in the late 1980s, a series of budget deficits, high levels of unemployment and public-sector expenditures have slowed the economy significantly. Still, the government continues to spend a high proportion of the national budget--37%--on social security and health care.

Source: Bank of America World Information Services

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