Mexico's President Ernesto Zedillo says the country has overcome the worst of its economic crisis.
'With all confidence, I can affirm that, thanks to the efforts of all Mexicans, the country has overcome the economic emergency stage and begun a recuperation.' Shortly after taking office in 1994, Mr Zedillo was faced with economic turmoil. In two months, the peso lost more than half of its value against the US dollar.
The resulting crisis cost more than a million jobs, caused thousands of businesses to fail and put the country on the edge of economic ruin. Interest rates passed the 100 per cent mark.
Mr Zedillo, 44, said Mexico had repaid the United States all but US$3.5 billion of the $12.5 billion in credits Washington had authorised to keep the Mexican economy afloat at the height of the peso crisis.
Underlining the president's optimism, Treasury Secretary Guillermo Ortiz said economic growth in the country could exceed the government's target of three per cent this year - although he conceded inflation may also exceed initial forecasts of 20.5 per cent by 'a few points'.
He said Mexico had avoided economic collapse despite the steep peso devaluation plunging the country into one of its worst recessions in decades.
