A report by Bloomberg this week highlights Mexico’s affordable labor,attractively priced peso,affordable real estate,strategic location and booming auto shipments to the U.S. as the main reasons the country is quickly outpacing China to become the number one supplier of foreign goods to the U.S.
Mexico real estate has consistently lured large international companies such as Nissan Motor Company to make large investments over recent months and years,with no signs of slowed progress in store. In fact,according to Bloomberg,the U.S. currently buys around 80 percent of Mexico’s exports,and the country has “increased manufacturing competitiveness during the past decade as labor costs in China and Japan have risen.”
“This has put Mexico’s economy on a sounder footing than Brazil’s to weather a prolonged global downturn,” wrote Nacha Cattan and Eric Martin of Bloomberg. “Mexico is poised to outperform Brazil for the second consecutive year.”
In addition,the Mexican government has announced that its GDP will increase by at least 3.5 percent in 2012,with exports expanding beyond the 2011 record of $350 billion. In a May report,Nomura Holdings analysts wrote,“Ten years from now,we are confident that Mexico will likely be seen as having become the most dynamic economy in the region.”
Another positive sign for Mexico’s growing economy includes its moderate inflation,which the central bank’s Agustin Carstens,who was previously the deputy managing director of the International Monetary Fund,has kept at around 4.5 percent. Other businesses to ramp up production in Mexico recently include Plantronics,Inc.,which announced a $30 million investment,as well as Delphi Automotive,which as been investing in training for engineering students.
Mexico’s improvements to education and growing number of better-paying jobs are also expected to help end the drug war,according to Bloomberg. Although the violence is contained along the country’s northern border,thousands of miles from Mexico’s most popular destinations,the large amount of media coverage of the violence in recent years has caused unnecessary fears among some travelers. As the remaining violence subsides and eventually comes to an end,Mexico’s already impressive tourism numbers are sure to skyrocket exponentially.