According to a recent report by Fox News, steelmaker Altos Hornos de Mexico (AHMSA) will invest more than $980 million and create more than 3, 000 new jobs in Mexico. This is just one example of the many recent investments that are driving middle class economic growth in Mexico, transforming the country and opening it up to foreign trade and investment.
AHMSA’s Minera del Norte unit is developing a mine that will produce coal for the company’s mills, as well as value a thermal treatment center that will allow it to produce steel for use in Mexico’s growing automotive and energy industries. All of this is good news for Mexico’s economy, which has made manufacturing for export a main source of its economic growth.
Mexico real estate is also poised to benefit from the increased foreign direct investment dollars, which have also led to a variety of positive social change. This includes a declining crime rate in cities throughout the country – despite news headlines of drug-related violence, which is mostly isolated in towns along its northern border – and a growing education rate among the middle class.
Mexico’s affordable and skilled labor market, strategic location near the U.S., Canada and South America, along with the signing of NAFTA, have all encouraged the flow of billions of foreign investment dollars into Mexico over the last decade. In fact, Mexico’s gross domestic product (GDP) has grown at more than twice the rate of the U.S. over the last ten years, providing an ever-growing number of opportunities for U.S. firms to increase sales to consumers south of the border.
In addition, Mexico has significantly improved its education system in recent years, with increased access to education and soaring literacy rates to prove it. In 2006 the World Bank reported that Mexico had reached a primary level enrollment of nearly 100 percent for children, and literacy rates in 2009 are above 92 percent.