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2005 Mexican Tax Report - English

01.31.05

Since the 2001 slowdown, the world economy has seen a recovery characterized by continual accelerations and decelerations. These fluctuations were aided by lax United States monetary and fiscal policies that do not satisfy economic analysts and specialists, who hoped that the recovery would be smoother and more sustained, without interruptions by geopolitical events or abrupt movements in oil prices and financial markets.

In 2004, the global economy experienced the greatest growth in recent decades, with the United States driving world demand, aided by China and Japan who in addition to contributing to the emerging Asian economies, are passing through one of the most brilliant periods in their histories.

The war in Iraq, unrest in various producing countries, hurricanes, problems in refining capacity, insufficient reserves, lack of investment and the unforeseen demand for oil in China were fundamental factors causing crude oil prices in New York to reach record levels of $ 55.67 at the end of October, with an increase of 60% during the year.

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