Baja, Calif.'s Booming Economy

[dis & dat]

Rosarito-300x232.jpg (23.65 KiB) Viewed 2437 times

[/color]In the third quarter of 2011, Baja California recorded a 5.58% unemployment rate, the lowest along the U.S.-Mexico border. This may seem great to Americans, but, historically, Baja California has averaged 1.5% to 2% unemployment.

The main factors that keep a low unemployment are public policies and the Baja California’s attractiveness for foreign and national investment. After an economic crisis in 2008 and 2009, economic activity fell considerably, but in 2010 Baja California showed some recovery with the economy growing by 4%—something the United States should envy.

Baja California’s strong economy is due partly to growth in the manufacturing sector, commerce and services. Mexican government spending also stimulated the economy by building infrastructure such as hospitals, roads, sports and cultural centers. Still, some sectors are lagging behind, mainly construction, which was affected by the U.S. mortgage crisis.

Agriculture, cattle ranching and the extracting industries—those that extract natural resources—have also slowed.
The tourism industry, including medical tourism has also slowed down.

But there seems to be an upside to these lagging indicators.

In the last few years Mexicali has lowered its dependence on the maquiladora (manufacturing) industry and grown in the service sectors. Before, the maquiladora industry represented 50% of the economy—now it represents only 27% of Mexicali’s economy.

In addition, the gas is only about $2.40 a gallon, poultry and beef are untainted by growth hormones and antibiotics, and housing is inexpensive.

Come on down!

Things are looking great for Baja California![/color]

[akshadow]

where do you dwell?
I would like to buy some fuel at $2.40 per gallon.
How do they even count unemployment when most of the workers in the past around San Felipe were not on the federal system and probably never showed up as employed?

[dis & dat]

You're correct. Thanks for bringing it to my attention! I should have read that much more carefully before I posted it.
You can be sure that I will be much more careful in the future.

[Wornout99]

where do you dwell?
I would like to buy some fuel at $2.40 per gallon.
How do they even count unemployment when most of the workers in the past around San Felipe were not on the federal system and probably never showed up as employed?

Yea, where do you get this $2.40 per gallon? I got pesos and filled up yesterday and it was a whopping $2.54 in San Felipe!

[sixkyu]

Peso keeps falling with respect to the dollar. With our ATM card, we can get about 14.15 pesos per dollar now. Current rates for cash at Banamex:

Get 13.72 pesos for $1 US
Pay 14.27 pesos for $1 US

Rate changes keep bringing the price of gas down, for anyone whose income is primarily in dollars.

[bajalou]

where do you dwell?
I would like to buy some fuel at $2.40 per gallon.
How do they even count unemployment when most of the workers in the past around San Felipe were not on the federal system and probably never showed up as employed?

Yea, where do you get this $2.40 per gallon? I got pesos and filled up yesterday and it was a whopping $2.54 in San Felipe!

Exchange rates near the border are considerably better for getting pesos than in San Felipe.

[Wornout99]

where do you dwell?
I would like to buy some fuel at $2.40 per gallon.
How do they even count unemployment when most of the workers in the past around San Felipe were not on the federal system and probably never showed up as employed?

Yea, where do you get this $2.40 per gallon? I got pesos and filled up yesterday and it was a whopping $2.54 in San Felipe!

Exchange rates near the border are considerably better for getting pesos than in San Felipe.

Yes, but on the down side, gas is higher in border towns by design. I got my pesos at the Bancomer ATM, wouldn't the rate be the same through out Mexico for that time and/or day?

[bajalou]

If you're pulling pesos from a ATM, it should be the same through out that banks system. If you're changing Dollars for Pesos at a money exchange, it will be quite divverent from the border areas to San Felipe. You can change to pesos in Algodones and then buy the gas in San Felipe.

[sixkyu]

The rates I quoted above are the Banamex branch rates for cash and do not vary by location either. Rates are better, I'm told, when cashing checks, but I haven't tried to figure out where to get that rate.

Our bank (UBS Financial Services) uses a rate just under the "buy dollars with pesos" rate for ATM withdrawals, and reimburses the ATM fee.

[bajajorgeyana]

Last Wednesday the Yahoo Exchange Rate showed Mexican Pesos at 14.01. I went to the ATM by the pool did a draw, went home, got out my trusty calculator and figured out that I got 13.8 before any ATM or bank fees were added.

[Wornout99]

Last Wednesday the Yahoo Exchange Rate showed Mexican Pesos at 14.01. I went to the ATM by the pool did a draw, went home, got out my trusty calculator and figured out that I got 13.8 before any ATM or bank fees were added.

I got the same rate at the same place on Wednesday, 13.85 before fees, 13.52 after.

PS: One can now use a US Debit or Credit card at the Pemex at Saltido Road. The rate is pretty good too.

[sixkyu]

I don't believe the rate depends on the ATM. The fee charged does. I believe the exchange rates are set by the card network (Visa, MC, etc). You're at a peso machine, so the network delivers pesos--buying them for you in the process. Many banks charge a percentage to do a foreign transaction. This is why we love UBS--no foreign transaction fees for ATM withdrawals (they do charge when you make purchases). They also pay us $3 per withdrawal to cover ATM fees.