Since there is a close association between the industrial sectors in Mexico and the US, this has had an adverse impact on exports and economic activity in Mexico. Second, the price of the Mexican oil mix has declined by 77 percent since mid-2014.
The 2007–08 crisis demonstrated how easily a failed financial institution – in particular, systemically important ones – could send tremors across jurisdictions worldwide. Shockwaves can be transmitted, for instance, directly via the liquidity channel by way of severe constraints to access funding or indirectly via second-round effects resulting from an economic slowdown.