136 What were the forces at work in the Mexican economy that

13.6 What were the forces at work in the Mexican economy that led to the market reforms and market opening of the mid-1980s ?

Solution

From 1970 - 1982 due to some bad policies and decisions by than Leaders lead the Mexican economy into huge crisis in 1982 where the inflation rate had gone up , unemployment rate increased etc which lead them into recession.

The Mexican economy suffered till 1988 but during the period of 1983-1988 the De la Madrids stabilization theory helped the mexican economy to again have a stable economy from 1988.

During 1988 than President Carlos Salinas de Gortari announced development plan 1989-1994 which is to make the annual GDP grrowth by 6% . During this time time period Carlos tried to imporve investments in the countries and also took help of central bank to reduce its debt. Private firms started to have a good participation in the economy which helped them to come over from the crisis by 1992. But in 1994 again there are crisis but not as of 1982.