Canadian and Mexican economic overviews - June 29, 2006

Mexico: General: The gradual lowering of the benchmark lending rate to a steady 7.0% as well as the rising crude oil prices seem to have done the trick. The economy has experienced a solid growth even though it is expected to cool off a bit to about 4% growth by the end of the year. GDP: + 5.5% in Q1 2006 compared to Q1 2005, up 1.4% from Q4 2005 Consumer Prices: + 3.0% in May 2006 compared to May 2005 Inflation: 3.2% in April 2006 for the last twelve months Unemployment: 2.9% in April according to official figures Industrial Production: + 9.7% in March 2006 compared to March 2005, the fastest pace in eight years, spurred by automotive exports to the US as well as domestic demand for houses and appliances. Trade Balance: + $464 million in April 2005 after a deficit of $147 million in March 2005 Currency: 11.4 Pesos to US$1 on June 21, 2006 (10.8 Pesos to US$1 at the same time last year) Steel Production May 2006: 1.24 million mt Canada: GDP: + 3.2% in Q1 2006 compared to Q1 2005 Consumer Prices: + 2.8% in May 2006 compared to 1.6% in May 2005 Producer Prices: + 2.2% in April 2006 compared to + 1.6% in April 2005 Industrial Production: + 2.1% in March 2006 compared to March 2005 Unemployment: 6.1% in May 2006 compared to 6.9% in May 2005 Trade Balance: + US$57.6 bn in April for latest 12 months Currency: C$1.11 to US$1 on June 21, 2006 (1.24 to US$1 last year) Steel Production May 2006: 1.349 million mt