InfoAnda - Rising poverty weakens Mexico conservatives

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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > International > Article Home Business & Finance News U.S. Politics International Technology Entertainment Sports Lifestyle Oddly Enough Environment Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Rising poverty weakens Mexico conservatives Tue Apr 14, 2009 9:48pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Jason Lange TLALNEPANTLA, Mexico (Reuters) - The ranks of the poor are swelling in Mexico as fallout from the U.S. recession savages the economy, setting up President Felipe Calderon's party for possible defeat in July's congressional elections. Mexico is tumbling into its deepest recession since the mid-1990s, hurt by a collapse in U.S. demand for its exports. That has led families in slums surrounding Mexico City to cut back on items like meat. At a slaughterhouse in Tlalnepantla, a big industrial satellite town on the northern edge of the capital, the number of livestock killed every day has fallen by about a third since December as consumers buy fewer and cheaper cuts. "Our money just doesn't go far enough," said Sirenia Vidal, 59, who picked up a small bag of ground beef from a butcher shop stacked with ribs, tongues and entrails outside the slaughterhouse. Vidal's family income took a hit this year when her daughter lost her job at a television factory, forcing her to slash her monthly food budget to 600 pesos per person ($45) from 800 pesos. Now she is buying more potatoes and beans. A slowing economy has probably pushed 4 million or 5 million Mexicans into poverty in the two years through August 2008, said World Bank economist Joost Draaisma, adding that higher food prices have also hurt the poor. Opinion polls show Mexican voters are more worried about the stalled economy than any other issue, eclipsing concern over a surge in drug gang violence that killed 6,300 people last year. The economy, which shrank over 9 percent in January from a year earlier, is leading voters to drop their support of Calderon's pro-business National Action Party, or PAN. If current poll trends hold, the centrist Institutional Revolutionary Party, or PRI, which has trumpeted policies like a ban on private investment in state-run oil refining, could become the largest block in the lower house of Congress in the July 5 mid-term election. Under that scenario, the conservative PAN would drop to No. 2, dealing a setback to Calderon who is trying to boost growth while holding Mexico's commitment to free trade and open markets. PUBLIC ANGER Leftist parties, formerly unified under ex-presidential candidate Andres Manuel Lopez Obrador, could also lose many of their congressional seats, polls show. "People say: 'Now that I've lost my job, I'm not going to vote for the PAN anymore,'" said political scientist Jose Antonio Crespo at Mexico City's CIDE think tank. A poll by Mitofsky showed the PRI ahead of the PAN by 34 percent to 26 percent in February, though a recent poll by Universal newspaper had the PRI up by just 3 percentage points. Mexico's economy began to slow sharply early in 2008 after the U.S. housing market collapsed and pushed the United States, which buys 80 percent of Mexican exports, into recession. Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! 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