The complexity of the problems in the euro area likely means that it will be some time before sufficient solutions are finally implemented. Hence, it is reasonable to expect that the eurozone may continue to fuel recurrent episodes of heightened risk aversion with global financial repercussions. Also, the euro area will continue to be a drag on the global economic recovery.
As the possibility of the occurrence of a tail-event in that area has not sufficiently diminished, additional deterioration of global economic prospects cannot be ruled out. This in turn could further constrain Mexico’s economic recovery. Two comments on external implications for Mexico are in order.