MEXICO CITY Oct 11 Mexico's slowing economy
could face an "extreme situation" if the United States fails to
raise its debt ceiling, the finance ministry's chief economist
was quoted as saying on Friday.
The U.S. Congress has so far failed to seal a deal to raise
the government's borrowing cap, which is set to expire on Oct.
17. Treasury officials have said hitting that limit and
defaulting on government obligations could cause lasting harm to
the United States' international reputation.
"Mexico, as part of a group of nations, would be ... in an
extreme situation if the debt ceiling is not resolved," Ernesto
Revilla, head of the finance ministry's economic planning unit,
told Mexican newspaper El Universal.
The United States is Mexico's top trading partner, the
destination of about 80 percent of Mexican exports.
The paper cited Revilla as saying the Mexican government was
waiting for third quarter Mexican GDP data due in November
before considering any revision to its growth forecasts, but
that the ministry was ready to act if need be.
Mexico's economy has stumbled this year amid slack U.S.
demand for local exports and a drop in domestic construction.
Following Mexico's shock economic contraction in the second
quarter and devastating floods last month, the government has
repeatedly cut back its growth forecast and now expects gross
domestic product to expand by around 1.7 percent this year.
Latin America's No. 2 economy grew 3.8 percent in 2012.
Mexican Finance Minister Luis Videgaray on Tuesday urged the
United States to reach an agreement on raising its debt ceiling,
saying a failure to do so could seriously damage financial
markets and the global economy.