Although North America's economy will grow a solid 3.5% to 4% in 1995 and 1996, the region's vigor is no longer exceptional in a world where the major industrial regions are expected to grow 3% or more, a new study says.
The study was conducted by the Conference Board Inc., The Conference Board of Canada and Mexico's Centro de Estudios Economicos del Sector Privado A.C.
What's more, Mexico's peso crisis could lead to higher-than-projected interest rates throughout North America and might cause closer scrutiny of U.S. and Canadian currencies and monetary and fiscal policies, according to the study.
As for Mexico's economy, the impact of the peso devaluation crisis will be devastating, the study said. The economy in that country is unlikely to grow as a result of lower domestic spending and decreased government spending.