Mexico's Calderon vows to boost growth to 5 pct

MEXICO CITY, Nov 28 (Reuters) - Mexican President Felipe Calderon said on Wednesday he plans to boost economic growth to 5 percent a year by 2012 by increasing competitiveness and sinking billions of dollars into infrastructure and education.

Mexican legislators have approved a 2008 budget that boosts public investment by 45 percent, the highest in two decades, thanks partly to a tax overhaul passed in November that increases government revenue.

Calderon also plans to raise private investment by 25 percent in government-related programs to modernize Mexico's creaking road, rail and airport network.

He vowed to improve competition in the telecommunications industry, dominated by heavyweights Telmex TELMEXL.XM (TMX.N) and America Movil (AMXL.MX) (AMX.N), the banking industry and other areas of the economy.

"We're going to push for a clearer competitive structure in the country's markets," Calderon said in a speech outlining his plans for the next five years.

Greater public spending to improve education, the tourist industry, transport infrastructure and other sectors will help increase economic growth to the government's goal of a minimum of 5 percent per year by 2012, Calderon said.

The planned infrastructure investments, totaling more than $50 billion next year, will keep Mexico's economy in good shape to weather an expected U.S. slowdown, Deputy Finance Minister Alejandro Werner told reporters at the same event.

"These things are going to act as mechanisms to compensate for whatever might be happening externally," Werner said.

Economists expect a U.S. economic slowdown brought on by weak housing prices and a mortgage lending crisis to hit Mexico as well.

Mexico sends about 80 percent of its exports to the United States, making it more sensitive than other countries in Latin America to U.S. economic trends.

Lawmakers approved a major overhaul to tax laws in September to boost government revenues and offset an expected fall in crude oil production.

Mexico's government expects the economy to grow about 3 percent this year and 3.7 percent next year, thanks partly to the tax package. The government has also said it expects the economy to grow at least 4.1 percent in 2009 and 2010. (Reporting by Noel Randewich; editing by Leslie Adler)