The Recession in Mexico: Boost From a Surprising Sector

This piece was originally published Dec. 23. Standard & Poor's on Dec. 14 cut Mexico's credit rating to BBB, the second-lowest investment grade. Faced with declining oil profits and an increased budget deficit, Mexico will be at risk of underinvestment in the years to come, which may force the government to ramp up borrowing. This is not an unfamiliar situation for Mexico: Capital shortages are built into its geography. However, there are two possible silver linings for the Mexican economy: the weakening peso and the drug trade.