yomexicoNEWS

By Thomas Black

Oct. 29 (Bloomberg) -- Agustin Carstens, head of the economic team of Mexican President-elect Felipe Calderon, said Mexico's government will focus on housing, tourism and construction to create jobs and boost economic growth.

Carstens, 48, said public and private investment in housing, tourism and construction of bridges, roads and other infrastructure will help Mexico soften the blow from a slowdown in the U.S., which purchases about 80 percent of Mexico's exports.

``We're going to give priority to certain sectors that rapidly create jobs and that strengthen the internal economy, giving more economic independence from the U.S. growth rate,'' Carstens, previously deputy managing director of the International Monetary Fund, said in a speech to businessmen in Monterrey.

Calderon appointed Carstens to map out Mexico's economic program for the next six years. Carstens has become the leading candidate for the post of finance minister. Calderon, who won the July 2 presidential election by less than 0.6 percentage point, will take office on Dec. 1.

The federal government alone can't increase jobs and economic growth, Carstens said.

``Our fundamental job is to create favorable conditions so the society, and in particular the private sector, can contribute to this growth process,'' he said.

Under Calderon, the government will continue to spend on anti-poverty programs, Carstens said. The programs, which grew under President Vicente Fox, include direct subsidy payments and free health care for Mexico's poorest.

The programs should be designed ``to create incentive and avoid creating dependence,'' Carstens said.

The U.S. economy expanded at a 1.6 percent annual rate in the third quarter, the slowest in more than three years, a Commerce Department report showed last week.

To contact the reporters on this story: Thomas Black in Monterrey, Mexico at tblack@bloomberg.net