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Mexico's Fox says 2002 budget to favor job creation
( 2001-10-07 12:04 ) (7 )

Mexican President Vicente Fox, moving to address this year's precipitous job losses from a stagnating economy, said on Saturday the government's 2002 budget will favor projects that create jobs.

"In the course of the coming year, spending on highway projects, housing. labor training programs, formal and temporary employment ... will count on additional resources," Fox told industrial leaders in the northern city of Monterrey.

Mexico's economy has been slowing in tandem with that of the United States, which buys 85 percent of Mexico's exports. In the second quarter, Latin America's No. 2 economy posted zero growth from a year earlier and it is seen shrinking in coming quarters because of the effects of the US attacks.

The economic downturn has forced massive job layoffs, which Fox said numbered 219,000 between December 2000 and September.

Private forecasts put the job losses as high as 400,000.

Fox did not detail what resources would be channeled to sectors with high levels of job creation. Economic officials have said the government will prepare an austere 2002 budget and will not increase spending to aid struggling businesses.