While Mexico and its exchange traded fund (ETF) have been hit in the global turmoil,  some of the country’s officials claim that they’ve sidestepped the worst of it. Others, however, seem to feel that more slowing is in the offing.

Overall, the country is maintaining its growth projections for this year at 2% to 2.4%. The Treasury Department’s 2009 growth forecast is 1.8% while the central bank is predicting something closer to 0.5% to 1.5%, reports the Associated Press.

Even with reported decrease in future growth projections, Mexico’s macroeconomic fundamentals should help it weather the storm with its disciplined and responsible fiscal policy.

More moderate annual rates of growth in employment, productivity and public spending is seen as a good indicator of Mexico’s economic health. Mexico’s President Felipe Calderon has promised emergency infrastructure spending to goad growth and employment.

With oil prices as low as they are, Mexico is still confident that it will keep up spending levels next year even if oil falls below $70 or if peso depreciates.

The iShares MSCI Mexico Index Fund (EWW) is down 46.3% year-to-date.

EWW performance chart

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.