Fox News reported that Mexico’s President Felipe Calderon would host leaders of the world’s largest economies for the G20 Summit, which will be held this week in the twin resort towns of San Jose del Cabo and Cabo San Lucas, Mexico. Topics are expected to include the struggling European economy and the state of the global economy.
The New York Times also covered the G20 meeting, as well as Mexico’s growing economy, writing that “last year, Mexico’s economy grew much faster than Brazil’s, and it looks set to outpace its larger Latin rival again in 2012.”
Debt-burdened consumers and faltering industrial production in Brazil, combined with slowing global economic growth in large players like China, have worked to slow down Brazil’s economy. At the same time, “Mexican factories are exporting record quantities of televisions, cars, computers and appliances, replacing some Chinese imports in the United States and fueling expansion", according to the article.
In fact, Mexico’s economy stands in stark contrast to the current state of affairs in Europe. Mexico can boast an impressive 17 years of macroeconomic stability, including low inflation and manageable debt, which has helped to increase its competitive standing on a global scale. In addition, Mexico’s GDP increased by nearly 4 percent in 2011, compared to Brazil at only 2.7 percent.
Add to this the fact that auto giants Nissan, Mazda and Honda have all announced plans to build new production facilities in Mexico, and the country’s economic future looks even brighter. “Mexico has been dedicated to open markets, free trade and deregulation", writes the New York Times. “Brazil’s model involves muscular government intervention through big state-controlled companies.”
In additional good news for Mexico real estate, Brazil’s homicide rate is much higher than Mexico’s, while Mexico’s future plans to increase efforts to break up monopolies, rewrite labor laws and open up its state-owned oil company are expected to add at least 2.5 percent to its economic growth rate, according to estimates by the Mexican Institute for Competitiveness.