Quote:
Originally Posted by Linkster
Exports only account for 15% of their GDP - so since the US is 74% of that ....leads to what a 12% hit on their GDP...which other countries have been clamoring for - and will now get - so like I said...maybe a 2% hit
Tourism numbers showing number of visitors includes 50% of people crossing the border for business - what your chart doesnt show is the amount spent per country - and it's effect on GDP which is again very low
so I respectfully disagree - there is no real economic effect and really the only effect I can see from all of this is that prices in the US for products and oil will skyrocket
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You would be incorrect. Tourism revenue from the US averages over $1,000 per foreign visit according to UNWTO. From South and Central America, perhaps $300. The Mexican economy will be devastated. Further, investment, remittances, and manufacturing account for a huge portion of Mexico's economy.
When you consider that a 4% loss in GDP is a huge shock, you can anticipate the effect. This is the reason the peso changes so rapidly on news of improving relation due to Slim Helu or talks by both leaders. If Mexico didn't need revenue from the US, Peņa Nieto wouldn't even be talking to him.