The Mexican financial system's ability to withstand the worst ravages of the crisis reflects progress made possible by the move to an inflation-targeting framework and a flexible exchange-rate regime, Guillermo Ortiz, the governor of the country's central bank, has said.

Mexico's real economy is suffering owing to its reliance on the United States economy and the "short but acute" shock of swine flu. In the first quarter, GDP shrank by 8.2% and some economists predict a double-digit