In fact, when the impact of the concurrent reduction in oil prices and output is taken into consideration, the result is a decline in annual public revenues from this source of approximately 5 percent of GDP since 2012. 2. After a prolonged period with near-zero interest rates, the US Federal Reserve began to increase the target for the federal funds rate in late 2015.
While this shock affects EMEs in general, its implications for Mexico are particularly important, given the close economic relationship between both economies and the openness of Mexico to foreign capital flows. 3. From December 2014 until late 2016, a recession was observed in the industrial sector in the United States.