Mexico’s expanding economy has continued in 2012,attracting the attention of some of the world’s most respected investors. With a growing middle class,a reasonable level of government debt and a robust currency,Mexico is setting an example that has caused some of the world’s largest players and most powerful governments to take notice.
This is good news for Mexico real estate,as well as the country’s manufacturing and exporting sectors,which have been closely connected with the United States since the North American Free Trade Agreement (NAFTA) was signed in 1994. Since its signing,Mexico’s poverty rate has decreased from around 50 percent to 35 percent,creating a stronger middle class. Also,migration has slowed substantially,with net migration to the U.S. nearing zero in 2011,serving as another sign of Mexico’s growing economy.
In fact,according to Jorge Gonzalez,who is dean and vice president of academic affairs at Occidental College in California,foreign direct investments totaled at least $19.4 billion in 2011,a $3 billion increase since 2009. And the inflation rate last year was a mere 3.82 percent,compared to 51.97 percent in 1995.
“The economic expansion continues in Mexico in ways the United States should notice and even admire,” stated Gonzalez in an address on the Mexican economy at the Latin America Caribbean Forum in April.
Mexico’s central bank also holds an impressive $142.5 billion in reserve funds,which according to Gonzalez is enough to deal with any unexpected financial crisis.
“Mexico’s exports and imports are in near perfect balance,” he shared. “Ninety-nine percent of Mexicans are going to work and school every day,making the economy stronger.”
All of this says the tables may have started to turn on Mexico’s longstanding relationship with the U.S. More and more companies are opting to do business in Mexico,which is making the country less dependent on the success of its neighbor to the north.